Incoming US President Donald Trump launched his own cryptocurrency, and its market capitalization quickly skyrocketed to billions of dollars.
The release of his meme coin $Trump comes as he prepares to be sworn in as the 47th president of the United States on Monday.
The business is being coordinated by Trump Organization affiliate CIC Digital LLC, which previously sold Trump-branded shoes and perfume.
Meme coins are used to build the popularity of viral internet trends and movements, but they have no intrinsic value and are highly volatile investments.
By Saturday afternoon, hours after its launch, $Trump’s market capitalization had reached nearly $5.5 billion (£4.5 billion), 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’s unclear how much profit President Trump might make from the venture.
“My new official Trump meme is here! It’s time to celebrate everything we stand for: Victory!” Trump tweeted on his social media platform Friday night when he announced the meme coin. In Truth Social, he wrote:
According to the coin’s website, approximately 200 million digital tokens have been issued, with another 800 million planned to be issued within the next three years.
“This Trump meme celebrates a leader who never backs down, no matter how adverse the odds,” the website says.
It includes a disclaimer that the coin is “not intended for or intended for” investment opportunities or securities and is “not political and has no affiliation with” any political movement, office or government agency. was included.
Critics accused Trump of using his presidency to make money.
Cryptocurrency venture capitalist Nick Tomaino said in a social media post: “The timing of Trump’s 80% stake and launch just hours before the inauguration is predatory and many people are likely to be harmed.”
Such digital tokens are notorious for speculators taking advantage of the hype to drive up their value before selling at the top of the market, leaving latecomers to book losses when prices plummet.
Cryptocurrency investors are hoping the Trump administration will boost the industry.
President Joe Biden’s regulators have cited concerns about fraud and money laundering as they crack down on crypto companies by suing exchanges.
Trump has been cautious about cryptocurrencies, but at a Bitcoin conference in Nashville last year, he said that when he returned to Washington, the United States would become the “crypto capital of the planet.”
His sons Eric and Donald Jr. announced their own cryptocurrency venture last year.
