Trump Memecoin Launch Roils Crypto Market, Splits Traders

Donald Trump has deepened his involvement in the cryptocurrency space ahead of his January 20 inauguration. In an unexpected move, the US President-elect launched his own memecoin, $TRUMP, this weekend causing a wave of speculation and trading activity in the crypto market.

US President-elect Donald Trump has launched his own memecoin, $TRUMP, ahead of his January 20 inauguration.

Within hours of its debut, the coin's price soared from a few cents to $14, sparking speculation and diverse reactions among traders and analysts, CNBC News reported.

Announcing the launch via his official Truth Social and X accounts, Trump assured skeptics that the coin is indeed linked to him. The announcement, which includes the phrase "WINNING," touts the token as a celebration of his ideals and leadership.

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. Go to https://t.co/GX3ZxT5xyq — Have Fun! pic.twitter.com/flIKYyfBrC

The memecoin's sudden rise left some traders skeptical. According to the coin's official website, it is a symbolic gesture rather than a financial instrument.

"Trump Memes are intended to function as an expression of support for, and engagement with, the ideals and beliefs embodied by the symbol "$TRUMP" and the associated artwork, and are not intended to be, or to be the subject of, an investment opportunity, investment contract, or security of any type," the announcement states.

Despite its symbolic intent, $TRUMP quickly gained traction among traders. According to CoinGecko, $TRUMP has amassed a market capitalization of over $13 billion. At the time of publishing, the memecoin was trading at $67, up 139% on the daily chart.

Initially, the crypto community approached the coin with caution, questioning its authenticity. However, the use of Trump's verified accounts and his ties to CIC Digital LLC, a company that was previously involved in his NFT projects, lent credibility to the launch.

Trump's involvement in cryptocurrency marks a significant departure from his earlier skepticism. Together with his sons, he co-founded World Liberty Financial, a platform that supports decentralized finance.

He has also shown interest in NFTs and promised to make the US a world leader in crypto innovation. The launch of the $TRUMP memecoin comes days before Trump takes office, making him the first US president to have his likeness used in a cryptocurrency.

As $TRUMP surged, other Trump-themed tokens saw their value plummet, with some losing up to 50% overnight, according to Coindesk. Meanwhile, $TRUMP's rapid rise has made it one of the most polarizing topics in the crypto world.