Trump Enters the Cryptocurrency Market, Launches a Digital Token Called $TRUMP

Meme coins like $TRUMP are typically designed to capitalise on the popularity of a public figure, movement, or internet trend.

Former US President Donald Trump has launched his own cryptocurrency, called $TRUMP, which has quickly become a hot topic in the cryptocurrency market.

The meme coin, unveiled on Friday (January 17), sparked a buying frenzy that saw its market capitalisation soar to nearly $6 billion by Saturday morning.

Trump announced the cryptocurrency on his Truth Social platform and X, describing it as a tribute to his leadership, with the coin's official website calling it a celebration of "a leader who doesn't back down, no matter the odds."

The announcement generated widespread interest, despite the coin having little actual utility.

The launch follows an earlier initiative by Trump-linked businessmen, who introduced a crypto platform called World Liberty Financial in October.

Meme coins, like $TRUMP, are typically designed to capitalise on the popularity of a public figure, movement, or internet trend, with no intrinsic economic or transactional value.

According to the official website, 200 million $TRUMP coins have been issued, with plans to release an additional 800 million over the next three years. At current valuations, the coins yet to be issued would be worth about $24 billion.

The cryptocurrency is being managed by Fight Fight Fight LLC. The company has not disclosed how much Trump has earned from the initial launch.

Unlike cryptocurrencies such as Bitcoin or Ethereum, meme coins have no inherent utility and are often used for speculative trading.

However, $TRUMP's association with Trump and the perceived legitimacy of the launch led to a massive surge in its market capitalisation.

Announcements on Trump's official Truth Social and X accounts reassured investors, especially as the project involves CIC Digital LLC, a company Trump previously used to sell non-fungible tokens (NFTs).

The coin's popularity is also likely due to Trump's cult-like following among his supporters.

This can be seen in the context of Trump's pivot from crypto scepticism to championing digital currencies during his 2024 presidential campaign, with promises to loosen crypto sector regulations, boosting traders' confidence.