President-elect Donald Trump has introduced a new cryptocurrency token that is experiencing a significant surge in value right before his impending inauguration. This move is yet another unconventional initiative from Trump, who has previously engaged in promotional ventures that include branded bibles, gold sneakers, and diamond-encrusted watches.
In a social media post made late Friday, Trump expressed excitement about the launch, stating, “It’s time to celebrate everything we stand for: WINNING! Join my very special Trump Community.” The promotional material features an image of Trump with a raised fist, overlayed with the words “FIGHT FIGHT FIGHT,” which refers to his reaction during a political rally following an assassination attempt in July.
The tokens, although presented as tokens of support rather than as investment opportunities, have attracted attention from those looking to capitalize on their potential value. Initially priced at around $10 each, the tokens saw a sharp increase, reaching approximately $70 by Sunday morning. However, their value took a downturn later that day following posts about a separate meme coin linked to Melania Trump, which was trading around $5 in the afternoon.
Meme coins represent a peculiar and highly unstable section of the cryptocurrency market. They often begin as playful jokes without substantial worth but can increase dramatically in price if demand is high enough. A notable example is Dogecoin, which features an adorable dog as its mascot. Unfortunately, meme coins are also a playground for scammers seeking to exploit unsuspecting investors for quick profits.
Some cryptocurrency supporters have praised the introduction of the Trump meme coin, viewing it as a testament to Trump’s backing of an industry that perceived itself as having been unfairly targeted by the Biden administration. Trump has signaled intentions to implement crypto-friendly regulations and has chosen notable advocates of cryptocurrency for key government roles.
Conversely, critics warn that the Trump meme coin could serve as a risky avenue for special interest groups and foreign governments looking to exert influence over the president. Anthony Scaramucci, once a communications director at the Trump White House, voiced his concerns 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 Trump meme coin sale is managed by CIC Digital, part of the Trump Organization. According to the token’s website, there are presently 200 million Trump meme coins available, with a total of 1 billion planned for release over the next three years. CIC Digital, together with another firm, retains control over 80% of the Trump meme coins and is set to benefit from trading revenues as stated on the token’s platform.
Recently, Trump’s family business has enacted an ethics policy that restricts him from engaging in daily operations of the Trump Organization while in the presidency, along with limiting the financial insights shared with him about the business.
Previously, the Trump family was involved in launching a cryptocurrency trading venture, and last year, Trump reported earning between $100,000 and $1 million from various non-fungible tokens (NFTs) depicting him in whimsical illustrations, such as an astronaut, cowboy, and superhero.
Additionally, Trump’s social media platform, Truth Social, has broken away from conventional valuations. Despite difficulties in generating revenue, the company is said to be valued at over $8 billion. This valuation appears to be significantly fueled by the enthusiasm of Trump’s supporters, boosting both the stock price and his overall net worth.
