Donald Trump Launches $TRUMP Meme Coin Ahead of Inauguration

Donald Trump's launch of the $TRUMP meme coin is sending shockwaves through the cryptocurrency market. The coin's valuation skyrocketed by over 300% in less than 24 hours.

Donald Trump has officially entered the cryptocurrency market with the launch of his own meme coin, valued at a staggering $5.81 billion within 24 hours of its debut.

Announced on Truth Social on Friday, the $TRUMP coin is pegged to Trump's "WINNING" the presidential election. Built on Solana's blockchain platform, the coin has a limited initial supply of 200 million, set to expand to 1 billion over three years.

The venture is spearheaded by CIC Digital LLC, an affiliate of the Trump Organization that has previously sold Trump-branded shoes and fragrances. CIC Digital LLC and Fight Fight Fight LLC, a company formed in Delaware this month, own 80% of the tokens. It remains unclear how much money Trump will personally make from this venture.

According to CoinMarketCap.com, on Saturday afternoon, hours after its launch, the market capitalization for $TRUMP reached nearly $5.5bn (£4.5bn).

The announcement on Truth Social reads: "Wow! They said I couldn't do it! Everyone said it was impossible! Well, to the shock of many, I've done it once again. Enjoy and have fun!"

The launch comes as part of Trump's broader foray into digital assets and merchandise sales ahead of his inauguration.

However, Nigel Green, CEO of deVere Group, has urged caution regarding the meteoric rise of $TRUMP.

"This is a revival of the meme coin trend we saw in 2021 and 2022, where many young, inexperienced investors got burned by extreme volatility," Green explained. "Without doubt, investors will get burned by this frenzy too."

Highlighting the speculative nature of meme coins, Green warned that their valuations can fluctuate wildly, with some people making big money and others losing significant sums. He likened the strategy to gambling and advised considering a sound, diversified long-term plan before getting involved.

"It's clear that people are buying $TRUMP not because they think it has any inherent value, but because they're hoping others will drive the price higher, enabling them to sell at a profit," he said, regarding the rapid rise in the coin's value.

"This strategy comes with inherent risks, and the valuations for meme coins tend to swing wildly in both directions."

"Understand the real risks to your money. This is not the same as investing in sound assets. Gambling is not the same as investing," he added.

Beyond the excitement, the launch also signals a crypto-friendly stance from the incoming Trump administration. Trump's move into the digital asset space aligns with speculation that his government will take a favourable approach to cryptocurrencies, potentially driving further adoption and innovation in the sector.

The deVere CEO expressed optimism regarding the broader implications for the crypto market, explaining that a pro-crypto administration could accelerate the adoption of digital currencies and blockchain technology.

"If you do want the thrill or novelty of chasing big gains, ensure it's part of a diversified strategy and not your main plan," he concluded.