The $TRUMP Coin: Why is it Worth Billions of Dollars?

The value of $TRUMP coin, like all meme coins, is purely speculative. It has no practical purpose or functionality beyond the symbolic act of showing support

The value of $TRUMP coin, like all meme coins, is purely speculative. It has no practical purpose or functionality beyond the symbolic act of showing support and political allegiance to Trump. However, fueled by the buzz surrounding its launch and Trump’s inauguration, the coin shot up, surging over 600% within its first day of trading.

The coin was launched at almost $6.50 on Friday and soared over the weekend, reaching a high of $73 on Sunday before dropping to $36 on Monday, according to CoinGeeko.

The estimate of Trump’s net worth, referenced earlier, is based on the fully diluted valuation of $TRUMP coin, which is the sum of the coin’s total supply (if it were in circulation) based on the current market price. Trump owns 800 million $TRUMP coins not yet in circulation, which are held through various affiliate companies.

According to CoinGeeko, the coin’s fully diluted valuation peaked at $72 billion on Sunday before dropping to $35 billion by Monday’s close. How much profit Trump ultimately earns from these holdings as they are sold off over the next three years will largely depend on the coin’s price stability, which may be influenced by his performance as president.

To put this into perspective, imagine Lil Baby launches a meme coin. Its value spikes the day he drops a new album. If the album has strong sales and gains widespread acclaim, the coin’s price will likely fluctuate but finish the week on an upward trend. On the other hand, if the album flops, the coin’s value will plummet and may not recover to pre-release levels.