Donald Trump’s newly launched cryptocurrency, $TRUMP, has experienced a meteoric rise ahead of his second inauguration as U.S. president.
Announced on Truth Social and X.com, the meme coin's value surged from US$20 to over $70 per token within days, generating at least $24 billion in trading volume by Sunday morning. The asset's market capitalisation currently exceeds $9 billion.
Meme coins, a type of cryptocurrency inspired by internet trends and with limited utility, are notoriously volatile. Similar assets, such as the recent “Hawk Tuah Girl” meme coin, have seen sharp declines - falling 95% in value shortly after launch.
Trump’s return to the presidency has been highly anticipated within the cryptocurrency community, given his promises of a favourable regulatory environment.
Trump previously declared intentions to position the U.S. as the “crypto capital of the planet”. The president-elect has also nominated Paul Atkins, a prominent crypto advocate, as Chair of the Securities and Exchange Commission (SEC). Atkins previously co-chaired the crypto advocacy group Digital Chamber’s Token Alliance.
Additionally, Trump plans to establish a crypto advisory council comprising up to 20 members. These moves have fuelled optimism among crypto investors but also raised concerns over a potential speculative bubble. Critics warn that political endorsements may inflate asset prices far beyond their fundamental values, exposing investors to significant risks.
The $TRUMP coin’s website reveals that CIC Digital LLC, a Trump-owned company, controls 80% of the coin's initial supply of 200 million tokens, which could expand to 1 billion over three years.
The $TRUMP website also includes a disclaimer: “Trump Memes are intended to function as an expression of support for, and engagement with, the ideals and beliefs embodied by the symbol "$TRUMP" and the associated artwork, and are not intended to be, or to be the subject of, an investment opportunity, investment contract, or security of any type. GetTrumpMemes.com is not political and has nothing to do with any political campaign or any political office or governmental agency.”
