US President-elect Donald Trump has unveiled his own cryptocurrency, $Trump, which quickly surged to a market capitalization of several billion dollars.
The launch of this meme coin coincides with Trump's upcoming inauguration as the 47th President of the United States on Monday.
The initiative was coordinated by CIC Digital LLC, an affiliate of the Trump Organization known for selling Trump-branded merchandise like shoes and fragrances.
Meme coins, typically associated with viral internet trends, lack intrinsic value and are highly volatile. Despite this, by Saturday afternoon, just hours after its release, $Trump's market capitalization had reached nearly $5.5 billion, according to CoinMarketCap.com.
CIC Digital LLC, along with Fight Fight Fight LLC—a company established in Delaware earlier this month—holds 80% of the tokens. The potential financial gains for Trump from this venture remain unclear.
Announcing the coin on his social media platform Truth Social, Trump wrote, "My NEW Official Trump Meme is HERE! It's time to celebrate everything we stand for: WINNING!"
According to the coin's website, 200 million digital tokens have been issued, with an additional 800 million to be released over the next three years. The site describes the coin as a tribute to "a leader who doesn't back down, no matter the odds."
A disclaimer on the website states that the coin is not intended as an investment or security and is not affiliated with any political campaign or government entity.
Critics have accused Trump of exploiting his presidency for financial gain. Nick Tomaino, a crypto venture capitalist, criticized the timing of the launch and Trump's substantial ownership, calling it "predatory" and warning of potential harm to investors.
Meme coins are infamous for speculative hype, where early investors drive up prices before selling, often leaving latecomers with significant losses.
Cryptocurrency investors are optimistic that the Trump administration will bolster the industry. Under President Joe Biden, regulators had expressed concerns over fraud and money laundering, leading to legal actions against crypto exchanges.
Although Trump had previously shown skepticism towards cryptocurrency, he proclaimed at a Bitcoin conference in Nashville last year that the U.S. would become "the crypto capital of the planet" upon his return to office.
Trump's sons, Erik and Donald Jr., also launched their own crypto venture last year.
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