Trump launches his own cryptocurrency ahead of second term in the Oval Office

US President-elect Donald Trump has launched his own cryptocurrency, which soon gained significant momentum in the market. On Saturday he released a meme coin called “$Trump” which soared in market capitalisation to several billion dollars.

US President-elect Donald Trump has launched his own cryptocurrency ahead of his second term in the Oval Office, and it quickly gained momentum in the market.

On Saturday, he released a meme coin called “$Trump,” which saw its market capitalization soar to several billion dollars.

According to Trump's website, CIC Digital LLC - an affiliate of the Trump Organization - is coordinating the venture. The private company handled the sales of Trump's shoes and fragrances in the past.

It's important to note that meme coins are typically used to amplify the popularity of an internet trend. However, they lack any intrinsic value and are considered highly volatile investments.

Hours after its launch, CIC Digital LLC - an affiliate of the Trump Organization - acquired 80% of the tokens, as reported by CoinMarketCap.com. CIC Digital LLC and Fight Fight Fight LLC, two Delaware companies, own the majority of the tokens. It remains unclear how much money the president-elect will personally make from this business venture.

Trump boasts about the meme coin

On Friday night, the Republican firebrand took to TruthSocial to announce the meme coins, stating that his team represents "winning."

"My NEW Official Trump Meme is HERE! It's time to celebrate everything we stand for: WINNING!" Trump wrote on his social media platform.

The coin's website claims that about 200 million digital tokens have been issued, and Trump's team involved in the venture promises to release another 800 million over the next three years. "This Trump Meme celebrates a leader who doesn't back down, no matter the odds," the website states.

The website also includes a disclaimer, stating that the coin is "not intended to be, or the subject of" an investment opportunity or security. It also claims that the coins are "not political and have nothing to do with" any political campaign, political office, or government agency.

Critics slam Trump for 'cashing presidency'

Critics have quickly denounced Trump's introduction of meme coins just days before assuming office.

"Trump owning 80% and timing launch hours before the inauguration is predatory and many will likely get hurt by it," Nick Tomaino, a crypto venture capitalist, wrote in a social media post.

It's common for meme coins to use topical hype to inflate their value, selling at the market's height. This leaves latecomers to bear the brunt of the losses as the coin's price plummets.

As the bitcoin enthusiast enters the White House, cryptocurrency investors are hoping for a boost in the Trump administration.

Outgoing President Joe Biden's regulators expressed concerns about fraud and money laundering, cracking down on crypto companies by suing exchanges. Trump, however, seems to have a different vision.

At a bitcoin conference in Nashville last year, Trump stated that America would become "the crypto capital of the planet" once he returned to Washington. Last year, both his sons, Erik and Donald Jr., announced their own crypto ventures.

With inputs from agencies