Trump-Backed Memecoin $TRUMP Skyrockets to $12B Market Value, Sparking Criticism

The total market value of a Trump-backed memecoin, launched just days before his inauguration, has skyrocketed to over $12 billion, according to Financial Times.

A Trump-backed memecoin, launched just days before his inauguration, has soared in value, sparking criticism and highlighting the optimism in the cryptocurrency sector.

The cryptocurrency, dubbed $TRUMP, debuted on Friday evening following a gala in Washington celebrating Donald Trump's return to the White House. The memecoin, priced initially at $6, quickly surged to $61 per token on Monday, according to Financial Times.

The memecoin is now one of the largest “memecoins” in circulation. These tokens, often created as jokes or to represent online viral moments, typically lack any traditional business model or intrinsic value.

The timing of the launch has sparked criticism, with some accusing Trump of leveraging his supporters' enthusiasm for personal financial gain. Around 80% of the tokens are owned by CIC Digital, a Trump Organization-affiliated entity, and a co-owned company called Fight Fight Fight LLC, according to the token's website. Insiders’ tokens are set to be unlocked and sold over the course of Trump's upcoming four-year term.

"Trump owning 80 per cent and timing [the] launch hours before inauguration is predatory and many will probably get hurt by it," said venture capitalist Nick Tomaino in a post on X (formerly Twitter).

The token's rapid rise has surprised many in the cryptocurrency market, but leading exchanges, including Binance, Coinbase, and Kraken, have announced trading plans for $TRUMP.

The memecoin was unveiled on Trump's Truth Social platform alongside a promotional image of the former president with his fist raised. The coin is described as “the only official Trump meme” on its accompanying website.

Eric Trump, the president-elect's son, called the token "the hottest digital meme on earth" and hinted at future ventures, adding that the Trump family's crypto initiatives were “just getting started.”

Critics have raised concerns about the ethical implications of the launch. Anthony Scaramucci, Trump's former communications director turned vocal critic, condemned the move, stating, “The Trump memecoin stuff is bad for the [crypto] industry. Don’t delude yourself.”

The memecoin's rise is emblematic of a broader optimism within the cryptocurrency sector. The industry expects a friendlier stance toward cryptoassets under Trump's administration, spurring increased activity in the market.

The value of Solana, the blockchain powering $TRUMP and many other memecoins, also hit a record high of $295 over the weekend. The Securities and Exchange Commission (SEC) is expected to issue a key decision in the coming months on whether U.S. stock market funds can directly invest in Solana, further intensifying interest in the blockchain and related tokens.

While some in the crypto industry view $TRUMP's success as a sign of momentum, others remain wary of its potential fallout. As insider tokens unlock for sale in the coming months, questions about transparency, financial ethics, and the long-term sustainability of such ventures continue to swirl.