President-elect Donald Trump's latest venture into cryptocurrency has catapulted him into the billionaire ranks overnight, as his newly launched $TRUMP token skyrocketed to a $13 billion market capitalization within days. The coin, introduced with the slogan "Join the Trump Community. This is History in the Making!" has become a flashpoint for both financial speculation and ethical scrutiny, raising concerns about its implications given Trump's impending presidency.
Trump announced the launch of $TRUMP late Friday in a post on Truth Social, inviting supporters to join his "very special Trump Community." By Sunday, the token, initially priced at $10, had surged over 300%, reaching $70 per coin at its peak before stabilizing near $65. Trading volume exploded, with more than $28 billion exchanged in the 24 hours ending Sunday noon, according to CoinMarketCap.
The token, hosted on the Solana blockchain, was created by CIC Digital LLC, an affiliate of the Trump Organization, in collaboration with Fight Fight Fight LLC. The Trump Organization retains ownership of 80% of the initial supply, which is set at 200 million coins. Over the next three years, the supply will gradually expand to 1 billion tokens, generating additional revenue from trading activity.
The website promoting the cryptocurrency asserts that $TRUMP is neither an investment opportunity nor a security and is "not political and has nothing to do with any political campaign, political office or government agency." It frames the token as a means for supporters to express their alignment with Trump's ideals and values. However, the site's disclaimer has done little to quell skepticism from ethics experts.
Adav Noti, executive director of the Campaign Legal Center, criticized the initiative, telling The New York Times, "It is literally cashing in on the presidency-creating a financial instrument so people can transfer money to the president's family in connection with his office. It is beyond unprecedented."
This isn't Trump's first foray into merchandise and collectibles. The $TRUMP coin adds to a portfolio that includes high-priced colognes, limited-edition sneakers, Trump-branded bibles, and NFTs, which have collectively generated millions in revenue for the Trump Organization. Trump's recent merchandise endeavors have proven wildly lucrative, with products like signed guitars and "Trump Watches" selling out quickly and netting millions.
Trump's embrace of cryptocurrency aligns with his campaign promise to make the U.S. a global leader in the industry. His victory in the 2024 election coincided with a surge in bitcoin prices, which reached record highs of over $105,000 following Election Day. Trump has outlined plans to ease regulatory burdens on crypto firms, establish a bitcoin reserve, and create a federal advisory council dedicated to digital assets.
The president-elect's pro-crypto stance has garnered significant support from blockchain entrepreneurs and industry billionaires, many of whom contributed to his campaign. Trump's proposed executive order to make cryptocurrency a policy priority has further buoyed market sentiment, contributing to a $1 trillion increase in global crypto market value since his election win.
Despite the enthusiasm surrounding $TRUMP, questions remain about the token's long-term viability and its ethical implications. Critics argue that the venture blurs the lines between Trump's private financial interests and his public role as president. Some have also raised concerns about the speculative nature of meme coins, which are often highly volatile and lack substantive utility.
Still, Trump appears unfazed by the controversy. In his launch announcement, he framed the token as a symbol of victory, writing, "This is history in the making."