Trump’s meme coin soars to $5.5b market cap

President-elect Donald Trump launched his own cryptocurrency, $Trump, which has rapidly reached a market capitalisation of $5.5 billion, according to CoinMarketCap.com.

The meme coin, issued by CIC Digital LLC, an affiliate of the Trump Organisation, debuted on Friday evening, just days before Trump assumes office as the 47th US president. CIC Digital and Fight Fight Fight LLC hold 80 per cent of the token supply, raising questions about potential profits for Trump.

“This Trump meme celebrates a leader who doesn’t back down, no matter the odds,” the coin’s website states, adding a disclaimer that $Trump is not intended as an investment.

Critics, including crypto venture capitalist Nick Tomaino, warned of financial risks, labelling the venture “predatory” due to its timing and ownership structure.

Meme coins, often associated with viral internet trends, are highly volatile and lack intrinsic value. Cryptocurrency investors remain hopeful that the incoming Trump administration will adopt a more crypto-friendly stance than President Joe Biden’s regulators, who have pursued stricter oversight.

Attribution: BBC

Subediting: M. S. Salama