Trump launches meme coin, $TRump days before return to White House
US President-elect Donald Trump has launched his own cryptocurrency, with a market capitalisation quickly reaching several billion dollars.
He launched the meme coin, called $Trump, as he takes office as the 47th president of the US on Monday.
The venture was coordinated by CIC Digital LLC – an affiliate of the Trump Organisation – which has previously sold Trump-branded shoes and fragrances.
Meme coins are used to build popularity for viral internet trends or movements, but they lack intrinsic value and are extremely volatile investments.
$Trump’s market capitalisation had reached almost $5.5 billion (£4.5 billion) by Saturday afternoon, just hours after its launch, according to CoinMarketCap.com.
CIC Digital LLC and Fight Fight Fight LLC, a company formed in Delaware earlier this month, own 80% of the tokens. It is unclear how much money Trump could make from the venture.
“My new official Trump meme is here! It’s time to celebrate everything we stand for: winning!” Trump wrote on his social media platform Truth Social in announcing the meme coin Friday night.
The coin’s website said about 200 million of the digital tokens have been issued and 800 million more will be released over the next three years.
The website said “this Trump meme celebrates a leader who never backs down despite adversity.”
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It included a disclaimer saying the coin “is not intended to be, or is the subject of, an investment opportunity or security” and that it “is not political and has no affiliation with any political campaign, political office, or government agency”.
Critics accused Trump of capitalizing on his presidency.
“Trump owning an 80 percent stake and launching it just hours before the inauguration is a predatory act and will likely harm many people,” crypto venture capitalist Nick Tomaino said in a social media post.
Such digital tokens are notorious for speculators who hype up the price to drive it up before selling at the top of the market, leaving latecomers to recoup their losses when the price falls.
Cryptocurrency investors are hoping the Trump administration will boost the industry.
President Joe Biden’s regulators cracked down on crypto companies by suing exchanges, citing concerns about fraud and money laundering.
Trump had previously been cagey about cryptocurrencies, but at a bitcoin conference in Nashville last year he said the U.S. would be the “crypto capital of the planet” after he returned to Washington.
His sons Eric and Donald Jr. announced their own crypto ventures last year.