21st January 2025 – (New York) Donald Trump’s recently launched cryptocurrency, known as $TRUMP, experienced a meteoric rise on Monday, exceeding a market value of $10 billion as he commenced his second term as President of the United States. The trading frenzy surrounding the coin generated billions in trading volume, coinciding with Bitcoin reaching a record high shortly before Trump’s return to the White House.
Introduced on Friday, $TRUMP, often referred to as a “meme coin,” skyrocketed from under $10 on Saturday to a peak of $74.59 before settling at around $45.21 by midday Monday, giving it a market cap of approximately $9 billion and ranking it as the 19th largest cryptocurrency, according to CoinMarketCap.
The token’s branding features imagery from an attempted assassination on Trump in July, illustrating his expanding interests in the cryptocurrency sector, which already includes World Liberty Financial. In a parallel move, Melania Trump unveiled her own coin, $MELANIA, on Sunday, which quickly gained traction and saw its market cap exceed $1 billion.
Ownership of $TRUMP is predominantly held by CIC Digital, a Trump-affiliated entity, alongside another group known as Fight, Fight, Fight. Their website describes the tokens as “an expression of support for, and engagement with, the ideals and beliefs embodied by the symbol ‘$TRUMP’,” clarifying that these are not classified as investments or securities.
The launch of these coins has sparked both intrigue and concern within the cryptocurrency community. Justin D’Anethan, a Hong Kong-based independent crypto analyst, noted the ethical and regulatory dilemmas posed by the official Trump token, suggesting that it could open a “Pandora’s box” of issues.
According to the Trump Organization, the president intends to transfer daily management of his extensive business portfolio—which includes real estate, hotels, golf courses, and media ventures—to his children while in office.
By 12:30 EST (17:30 GMT), trading volume for $TRUMP approached $40 billion, contributing to a broader rally in cryptocurrency prices. Investor optimism has surged, with many hoping that Trump will fulfil his promise to be a “crypto president,” potentially easing regulatory constraints and fostering greater digital asset ownership.
Bitcoin, meanwhile, surged to an all-time high of $109,071.86 during early European trading before retreating to around $105,297, reflecting a more than 10% increase so far this month. Both the Trump and Melania coins were developed on the Solana blockchain, which ranks as the third-largest network in the cryptocurrency space.
Market analyst Grzegorz Drozdz noted that the excitement surrounding the launch of $TRUMP and $MELANIA has contributed to the cryptocurrency market’s recent popularity. However, some analysts caution against the speculative nature of such assets. Drozdz referred to meme cryptocurrencies as prone to volatility, emphasising their classification as speculative investments.
The intertwining of cryptocurrency and political influence raises critical questions regarding governance and market dynamics. D’Anethan remarked that the involvement of public figures like Trump in speculative markets is likely to attract regulatory scrutiny.
Both $TRUMP and $MELANIA’s websites opt to describe their offerings as “fungible crypto assets,” avoiding the term “cryptocurrency” altogether, reflecting a strategic positioning in the evolving digital asset landscape.
© 2021 DimSum Daily. ALL RIGHTS RESERVED.
© 2021 DimSum Daily. ALL RIGHTS RESERVED.