President-elect Donald Trump has introduced a new cryptocurrency called $TRUMP just days before his inauguration. This “meme coin” has seen a rapid increase in value, drawing significant attention from both supporters and critics.
Rapid Value Increase
After its launch, the $TRUMP coin’s price surged from approximately $20 to over $70 per token, with trading volumes exceeding $24 billion as of Sunday morning.
This swift rise has led to a market capitalization of more than $14 billion.
The Trump Organization, through CIC Digital LLC, holds 80% of the $TRUMP tokens, planning to release up to 1 billion over three years.
Critics argue that this significant ownership stake, combined with Trump’s upcoming presidency, presents potential conflicts of interest and ethical challenges.
Shift in Cryptocurrency Stance
This move marks a notable change in Trump’s stance on cryptocurrencies. Previously skeptical, he now aims to make the U.S. a leader in the crypto industry. Plans include issuing an executive order to prioritize cryptocurrency and appointing crypto-friendly individuals to key regulatory positions.
The crypto community has responded with enthusiasm, celebrating the anticipated supportive regulatory environment. Events like the “Crypto Ball,” featuring performances by artists such as Snoop Dogg, highlight the industry’s optimism.
However, some experts express concerns about the speculative nature of meme coins and potential risks to investors.
