Key Takeaways
- $Trump meme coin reached a $5.5 billion market cap within hours.
- Critics allege the coin launch is predatory due to its timing and ownership.
- Trump's stance on crypto has evolved, with promises to support the industry.
Launch and Initial Reception
President-elect Donald Trump introduced his cryptocurrency, $Trump, just days before taking office as the 47th U.S. president.
Launched by CIC Digital LLC, an affiliate of the Trump Organization, $Trump is a meme coin aimed at celebrating Trump’s brand rather than offering traditional investment value.
Market Performance
Within hours of its release, the coin’s market capitalization soared to nearly $5.5 billion, according to CoinMarketCap.com.
Approximately 200 million tokens are in circulation, with plans to release another 800 million over the next three years.
On Truth Social, Trump declared:
My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING!
Criticism and Concerns
Even though critics have called its release opportunistic, the coin’s website states:
$Trump is not intended to be an investment opportunity.
Nick Tomaino, a crypto venture capitalist, criticized the timing and Trump’s 80% ownership of the tokens, labeling it:
Predatory.
Meme coins like $Trump are notoriously volatile, often fueled by hype before prices drop, leaving late investors at risk of losses.
Trump’s Evolving Crypto Stance
Trump’s stance on cryptocurrency has shifted since he previously dismissed it.
At a Bitcoin conference in 2024, he promised to make the U.S.:
The crypto capital of the planet.
Cryptocurrency advocates are hopeful for regulatory clarity and a pro-crypto environment under his administration.
