The Blubber

U.S. President-elect Donald Trump has launched his own cryptocurrency, which rapidly achieved a market capitalization of several billion dollars.

The meme coin, named $Trump, was unveiled just days before Trump is set to take office as the 47th president of the United States on Monday.

The initiative was orchestrated by CIC Digital LLC, an affiliate of the Trump Organization known for selling Trump-branded merchandise, including shoes and fragrances.

Meme coins are digital tokens created to promote viral trends or movements. While they often attract significant attention, they lack intrinsic value and are highly volatile as investments.

By Saturday afternoon, only hours after its launch, the market capitalization of $Trump surged to nearly $5.5 billion, according to CoinMarketCap.com.

CIC Digital LLC and Fight Fight Fight LLC—another company recently established in Delaware—own 80% of the tokens. It remains unclear how much revenue Trump stands to gain from the venture.

“My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING!” Trump announced on Truth Social, his social media platform, on Friday night.

Features and Criticisms

According to the coin’s website, approximately 200 million tokens were initially issued, with an additional 800 million planned for release over the next three years. The website describes $Trump as a celebration of a leader who “doesn’t back down, no matter the odds.”

The site includes a disclaimer emphasizing that the coin is not intended as an investment or a security, nor is it affiliated with any political campaign, office, or government agency.

Critics quickly accused Trump of leveraging his position for personal profit.

“Trump owning 80% and timing the launch just before his inauguration is predatory, and many will likely suffer financial losses because of it,” said Nick Tomaino, a cryptocurrency venture capitalist, in a social media post.

Digital tokens like $Trump are notorious for speculative trading, where hype drives up prices before early adopters sell at peak value, often leaving late investors with significant losses.

Shifting Views on Crypto

Cryptocurrency enthusiasts are optimistic that the incoming Trump administration will bolster the industry.

The Biden administration had taken a stricter approach, citing concerns over fraud and money laundering while pursuing legal actions against cryptocurrency exchanges.

Though Trump was previously skeptical of cryptocurrencies, his stance shifted last year. At a Bitcoin conference in Nashville, he proclaimed that America would become “the crypto capital of the planet” under his leadership.

Trump’s sons, Erik and Donald Jr., also launched their own cryptocurrency venture last year.