Ahead of his inauguration as President of the United States for a second term, Donald Trump issued a virtual currency called “Meme Coin” called $Trump.
He announced the launch at Truth Social and X on Friday night. Since then, the asset’s value has soared, more than tripling in price from about $20 per token to more than $70, with trading volume of at least $24 billion and a market cap of $14 billion as of Sunday morning. Exceeded.
“Meme coins” are a type of virtual currency influenced by trends such as Internet memes, and have no inherent utility and are often susceptible to price fluctuations and crashes. The “Hawk Tuah girl” meme coin plunged 95% shortly after its release last month, with investors filing complaints with the SEC alleging insider trading and its market cap dropping from $500 million to $25 million.
The crypto community is looking forward to President Trump’s second term, with a favorable regulatory environment expected and Trump’s claims that he intends to make the United States the “crypto capital of the planet.”
The president-elect has nominated Paul Atkins to head the Securities and Exchange Commission (SEC). Atkins is known as a cryptocurrency enthusiast and has served as co-chair of the cryptocurrency advocacy group Digital Chamber’s Token Alliance since 2017.
President Trump also promised to issue an executive order to create a Cryptocurrency Advisory Council with up to 20 members once he takes office.
The speculative nature of crypto assets has raised concerns about the possibility of bubbles, where political endorsements and patronage can cause asset prices to soar far above their fundamental value, failing to reflect the risks associated with the investment.
Larisa Yarovaya, Associate Professor of Finance and Director of the Center for Digital Finance at Southampton Business School, said: “The strong political and government support for cryptocurrencies paradoxically threatens their decentralized spirit. This could ultimately make crypto assets less attractive.” , wrote an article for the Guardian earlier this month. “If the SEC turns a blind eye in 2025, especially if the meme coin bubble bursts again, consumers may not be protected from any financial loss at all.”
According to the Trump Meme Coin website, a Trump-owned company called CIC Digital LLC owns 80% of the coin’s supply of 200 million tokens, which is expected to grow to 1 billion tokens over three years. There is.
Trump has previously released a large number of cryptocurrency trading cards during his presidential campaigns, with each release grossing over $4 million. His sons Eric Trump and Donald Trump Jr. also launched a cryptocurrency venture, World Liberty Financial, in 2024, raising concerns about a blatant conflict of interest.
Major cryptocurrency companies poured at least $10 million into President Trump’s inauguration fund.
Memecoin’s website included the following disclaimer: “The Trump meme is intended and is not intended to serve as an expression of support for and commitment to the ideals and beliefs embodied by the symbol “$TRUMP” and associated artwork. , or to be the subject of any investment opportunity, investment contract, or security of any kind. GetTrumpMemes.com is not political and has no affiliation with any political movement, office, or government agency. ”
