President-elect Donald Trump Launches Official Trump (TRUMP) Meme Coin, Drawing Sharp Criticism

The announcement, made on Trump's Truth Social account, initially sparked speculation of a hack, but it was confirmed that Trump himself unveiled the coin as a way to "celebrate winning."

President-elect Donald Trump surprised the cryptocurrency world on Monday by launching his Official Trump (TRUMP) meme coin, two days ahead of his inauguration.

The announcement, posted on Trump’s Truth Social account, initially sparked rumors of a hack, but it was later confirmed that Trump himself unveiled the coin as a way to “celebrate winning.”

The coin quickly surged in value, rising over 12,000% and reaching an all-time high of nearly $35, with a market cap of $5.98 billion.

The TRUMP token began trading on Monday at around $0.25, but its value skyrocketed within hours, reaching a peak price of $34.88.

At one point, the coin’s price surged so rapidly that major cryptocurrency exchanges, including Binance and Coinbase, experienced technical difficulties in keeping up with the trading volume.

The coin’s explosive growth has attracted attention and criticism, with some highlighting the coin’s affiliation with Trump and its potential to use his political position for financial gain.

The distribution structure has also raised concerns, as 80% of the coin's maximum supply is allocated to insiders, including those who participated in the coin's private funding round.

This leaves only 20% of the coin's maximum supply circulating in the open market, a disparity that critics say could lead to unfair advantages and market manipulation.

Several prominent figures in the cryptocurrency community have expressed skepticism and disapproval over the TRUMP token.

Crypto YouTuber Stephen Findeisen, also known as Coffeezilla, criticized the timing and distribution of the coin, calling it “nasty work” and speculating that the coin’s backers might be able to avoid legal repercussions.

Political commentator and former congressional candidate Brian Krassenstein condemned the move as “peak grift and cronyism,” while economist and gold advocate Peter Schiff mocked the coin’s rise, comparing it to Bitcoin’s much slower growth.

Despite the skepticism, the TRUMP token's meteoric rise has provided quick returns for early investors.

One individual, who purchased $50,000 worth of the coin at around $0.25, reportedly sold a portion of their holdings at $30, netting a profit of nearly $1.1 million in under two hours.

However, concerns remain over the long-term sustainability of the coin, especially considering that only 20% of the maximum supply has entered circulation.

The remaining 80% will be gradually released over the next 36 months, raising questions about the potential impact on the coin's value once the full supply hits the market.