President-elect Donald Trump has entered the cryptocurrency space with the launch of the $TRUMP meme coin, a Solana-based digital asset marketed as a celebration of his 2024 election victory.

The announcement has sparked mixed reactions, with the coin seeing explosive growth in value while raising eyebrows in the crypto industry.

Fresh from his 2024 election victory, former President Donald Trump has made a grand entrance into the cryptocurrency arena with the launch of the $TRUMP meme coin. This Solana-based digital asset is being touted as a celebration of Trump's triumph and a way to join the exclusive "Trump Community." But what exactly is this coin, and how is it faring in the crypto world? Let's delve into the details.

Announcing the coin on Truth Social, Trump urged his followers to join his "very special Trump Meme" and "Have Fun!" The promotional graphic featured Trump's image on the coin with the words "Fight, Fight, Fight." A link in the post led to a page where supporters could purchase the $TRUMP coin.

Announcing the launch on Truth Social, Trump stated:

“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.”

The promotional graphic featured Trump’s image on the coin with the words “Fight, Fight, Fight.”

Rapid surge in value

Since its launch, $TRUMP has skyrocketed in value from $0.18 to $22.94, showing a 253.75% increase in 24 hours. The coin currently has a market cap of $4.59 billion and a 24-hour trading volume of $5.77 billion, according to Binance.

Limited supply and ownership

The coin is capped at 200 million tokens initially, with plans to expand to 1 billion tokens over the next three years. Notably, around 80% of tokens are controlled by Trump Organization affiliate CIC Digital LLC and Fight Fight Fight LLC, which will also share in revenue from trading activity.

Mixed Reactions

While Trump promoted $TRUMP as a celebration of "WINNING" and urged supporters to join the "Trump Community," critics like former White House communications director Anthony Scaramucci called it “corruption” and warned it is "bad for the industry." The coin has also faced skepticism due to its association with meme-based assets, which are known for their volatility.

Industry reactions and risks

The crypto community is divided. Meme coins, often tied to internet trends, are considered risky investments. Coinbase states, “Engaging with meme coins carries risk and is something you should only attempt armed with research and experience.”

The bigger picture

Trump's move aligns with his ambition to make the US the "crypto capital of the planet." His election victory in 2024 already boosted the crypto market, with Bitcoin crossing $100,000 shortly after Election Day. The global crypto market grew by $1.8 trillion in 2024, including $1 trillion since Trump's win, according to CoinGecko.

As the $TRUMP meme coin continues to make waves, it remains to be seen whether this is a revolutionary step in crypto or merely a campaign strategy. For now, the coin has further ignited the cryptocurrency frenzy.