The newly elected US President Donald Trump launched his own cryptocurrency, the market capitalization of which quickly grew to several billion dollars.
His release of the meme coin, $Trump, comes as he prepares to take office on Monday as the 47th president of the United States.
The venture was coordinated by CIC Digital LLC – a subsidiary of the Trump Organization – which previously sold Trump-branded shoes and fragrances.
Meme coins are used to build the popularity of a viral internet trend or movement, but they lack intrinsic value and are extremely volatile investments.
By Saturday afternoon, hours after the launch, the market capitalization for Trump had reached almost $5.5 billion (£4.5 billion), according to CoinMarketCap.com.
CIC Digital LLC and Fight Fight Fight LLC, a company incorporated in Delaware earlier this month, own 80% of the tokens. It is not clear how much Trump could earn from the venture.
“My NEW official Trump meme is HERE! It’s time to celebrate everything we stand for: WINNING!” Trump wrote on his social media platform Truth Social while announcing the meme coin on Friday night.
Some 200 million digital tokens have been issued and another 800 million will be released over the next three years, according to the coin’s website.
“This Trump meme celebrates a leader who doesn’t give up, no matter the odds,” the website says.
It includes a disclaimer stating that the coin is “not intended to be or the subject of” an investment opportunity or security and that it is “non-political and has no connection with” any political campaign, political office or government agency.
Critics have accused Trump of cashing in on the presidency.
“Trump owning 80 percent and planning to launch hours before the inauguration is predatory and many will likely be hurt by it,” said Nick Tomaino, a crypto venture capitalist, in a social media post.
Such digital tokens are notorious for speculators using hype to boost value before selling off at the top of the market, leaving latecomers to count their losses as the price falls.
Cryptocurrency investors are hoping the Trump administration will boost the industry.
President Joe Biden’s regulators cited fraud and money laundering concerns as they cracked down on crypto companies by suing exchanges.
Trump has previously been tight-lipped about cryptocurrency, but he said at a Bitcoin conference in Nashville last year that America would be the “crypto capital of the planet” when he returned to Washington.
His sons Erik and Donald Jr announced their own crypto venture last year.
