Newly elected U.S. President Donald Trump has launched a cryptocurrency in his name, with its market value skyrocketing to billions within hours. The meme coin, branded as $Trump, was unveiled just days before Trump is set to take office as the 47th President of the United States.
According to a BBC report, the cryptocurrency was introduced by CIC Digital LLC, a company previously associated with Trump-branded products such as footwear and fragrances. Meme coins, often tied to viral internet trends or movements, typically lack intrinsic value and are considered high-risk investments.
Following its release on Friday night, the market capitalization of $Trump surged to approximately $505 million within hours, as reported by CoinMarketCap.com. The token is jointly owned by CIC Digital LLC and Fight Fight Fight LLC, a Delaware-based entity established earlier this month. Together, these organizations hold 80% ownership of the tokens. However, it remains unclear how much Trump will personally profit from this venture.
The token’s website disclosed that nearly 200 million tokens have already been issued, with an additional 800 million planned for release over the next three years. The website clarified, “This coin is not an investment opportunity, nor does it serve as a security, political campaign, or affiliation with any government body.”
Critics have raised concerns about the initiative. Some allege that Trump is monetizing his presidency through this venture. Crypto venture capitalist Nick Tomaino criticized the timing and ownership structure, stating, “Trump’s 80% stake and the launch just hours before his inauguration are manipulative, and many investors are likely to suffer losses.”
Digital tokens like these often cause a stir in the market, driving up prices temporarily. However, early investors frequently sell their shares for profit, leaving latecomers to face significant losses.
Despite the risks, crypto investors are optimistic that the Trump administration will bolster the industry. Trump himself, who previously expressed skepticism about cryptocurrencies, declared at a Bitcoin conference in Nashville last year, “When I return to Washington, America will become the world’s crypto capital.”
Under President Joe Biden, regulators have taken a hard stance against crypto-related fraud and money laundering, leading to crackdowns on various crypto companies. Meanwhile, Trump’s sons, Eric and Donald Jr., have also announced their own crypto ventures in the past year. Source: BBC
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