Donald Trump has deepened his involvement in the
cryptocurrency space ahead of his January 20 inauguration. In an unexpected
move, the US President-elect launched his own memecoin, $TRUMP, this weekend
causing a wave of speculation and trading activity in the crypto market.
Within hours of its debut, the coin’s price
skyrocketed from just a few cents to $14, leaving traders and analysts divided
over its legitimacy and implications for the crypto industry, CNBC News
reported.
Trump Doubles Down on Crypto
Trump announced the launch through his official Truth
Social and X accounts, assuring skeptics that the coin is indeed linked to him.
The announcement, accompanied by the phrase “WINNING,” described the
token as a celebration of his ideals and leadership.
My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING! Join my very special Trump Community. GET YOUR $TRUMP NOW. Go to https://t.co/GX3ZxT5xyq — Have Fun! pic.twitter.com/flIKYyfBrC
— Donald J. Trump (@realDonaldTrump) January 18, 2025
The memecoin‘s sudden rise triggered skepticism among
some traders. The coin’s official site claims it is a symbolic gesture rather
than a financial instrument.
“Trump Memes are intended to function as an
expression of support for, and engagement with, the ideals and beliefs embodied
by the symbol “$TRUMP” and the associated artwork, and are not
intended to be, or to be the subject of, an investment opportunity, investment
contract, or security of any type,” the announcement noted.
Despite its symbolic intent, $TRUMP quickly gained
traction among traders. Data from CoinGecko shows that $TRUMP has amassed a
market capitalization of more than $13 billion. At the time of this
publication, the memecoin traded at $67, representing a 139% surge in the daily
chart.
The crypto community initially approached the coin
with caution, questioning its authenticity. However, the use of Trump’s
verified accounts and his ties to CIC Digital LLC, a firm previously involved
in his NFT projects, lent credibility to the launch.
Trump Embraces Memecoins
Trump’s embrace of cryptocurrency marks a stark shift
from his earlier skepticism. Alongside his sons, he co-founded World Liberty Financial, a platform championing decentralized finance.
He has also previously dabbled in NFTs and pledged to
make the US a global hub for crypto innovation. The $TRUMP memecoin launch
comes days before Trump assumes office, making him the first US president to
lend his likeness to a cryptocurrency.
As $TRUMP surged, other Trump-themed tokens saw their
value plummet, with some losing as much as 50% overnight, Coindesk reported. Meanwhile, $ TRUMP’s
rapid rise has positioned it as one of the most polarizing topics in the crypto
space.
This article was written by Jared Kirui at www.financemagnates.com.
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