President-elect Donald Trump has recently introduced a new cryptocurrency token that is experiencing a significant surge in value, potentially enhancing his financial portfolio just ahead of his inauguration. This move continues Trump’s trend of unconventional promotional activities, which previously included the sale of branded bibles, gold sneakers, and luxury diamond-encrusted watches.
In a social media post shared late Friday, Trump encouraged supporters to join his exclusive “Trump Community” with excitement, stating, “It’s time to celebrate everything we stand for: WINNING!” The marketing for these new tokens features an image of Trump with a raised fist against the phrase “FIGHT FIGHT FIGHT,” a nod to his reactions following an assassination attempt at a rally last July.
In his promotion of the meme coin, Trump lightheartedly urged followers to “Have Fun!” According to the website where these tokens are being sold, they are intended as symbols of support rather than investment opportunities. However, this has not deterred individuals from seeking profit, with initial sales priced at $10 each surging to around $70 by Sunday morning.
Meme coins represent an unusual and volatile segment of the cryptocurrency market, often launched as a joke without intrinsic value but capable of price increases if sufficient interest is piqued. Dogecoin, recognizable by its mascot—a charming dog that reflects humorous sentiments like “much wow”—is one of the most famous examples. Unfortunately, these meme coins can also be exploited by fraudsters eager to capitalize on unsuspecting investors.
Some cryptocurrency advocates applauded the launch of the Trump meme coin, viewing it as a representation of the incoming president’s favorable stance towards an industry they believe was unfairly targeted during the Biden administration. Trump has indicated intentions to promote more crypto-friendly regulations and selected several prominent crypto supporters for influential government roles.
Conversely, critics warn that the Trump meme coin could enable special interests and foreign entities to exert undue influence over the president. Anthony Scaramucci, a former communications director for Trump, expressed concern on social media, stating, “Now anyone in the world can essentially deposit money into the bank account of the President of the USA with a couple clicks.”
The release of the Trump meme coin was orchestrated by CIC Digital, a subsidiary of the Trump Organization. Their official website revealed the availability of 200 million Trump meme coins, with a planned issuance of 1 billion over the following three years. CIC Digital and its partner company hold a combined 80% stake in the meme coins and are entitled to revenue generated from trading activities, as outlined on the coin’s website.
In conjunction with this new venture, Trump’s family business has recently adopted an ethics agreement that restricts his involvement in daily operations and limits the financial information he receives about the Trump Organization once he assumes the presidency. The Trump family had also helped to establish a cryptocurrency trading platform last year, and Trump has previously engaged with non-fungible tokens (NFTs), reporting earnings between $100,000 and $1 million from a collection of digital trading cards showcasing cartoonish representations of himself as various characters like an astronaut and a superhero.
Furthermore, Trump’s social media platform, Truth Social, has challenged conventional valuations, currently pegged at over $8 billion despite its difficulties in generating revenue. This valuation has been buoyed by support from his followers, which in turn enhances both his stock price and overall net worth.
