Unlock the White House Watch newsletter for free
Your guide to what the 2024 US election means for Washington and the world
The total value of Donald Trump-backed memecoins in circulation has reached more than $13 billion, sparking accusations that the president-to-be is exploiting the enthusiasm of his supporters for financial gain.
Since its launch Friday night, the cryptocurrency $TRUMP — in which Trump’s family company has a direct stake — has jumped from about $6 to $67, making the value of coins in circulation worth about $13.2 billion, according to Coinbase data.
The rapidly growing value of the token has already made it one of the biggest “memecoins” in the crypto market, or tokens that represent online viral moments. Initially developed as a joke by industry insiders, memecoins have no business model or cash flow.
The number of new memecoins and their value have soared since Trump’s election victory in November. Industry executives and traders are betting that the new administration will adopt a friendlier approach to cryptoassets.
Trump’s coin was launched on Friday night on his website Truth Social shortly after a gala in Washington for crypto executives and politicians to celebrate his inauguration, which takes place on Monday. The accompanying website features an image of Trump with a raised fist and describes the coin as “the only official Trump meme.”
About 80 percent of the token will be held by CIC Digital, which is affiliated with the Trump Organization, and a company co-owned by CIC called Fight Fight Fight LLC, according to the token’s website — a reference to the latest assassination attempt on Trump in the summer.
Tokens held by insiders will begin to unlock for sale over the next three to 12 months and will be available for sale during Trump’s four-year term.
“Trump has 80 percent and timing [the] launching hours before the inauguration is predatory and many are likely to be hurt by it,” said Nick Tomaino, a venture capitalist, on X.
The launch surprised many in the crypto market, but Binance, Coinbase and Kraken, the three biggest cryptocurrency exchanges, have since announced plans to trade the Trump coin on their markets.
The Trump family is increasingly interested in cryptocurrencies. The newly elected American president and his three sons have promoted World Liberty Financial, a crypto venture founded by his longtime business partners and others, while Trump’s social media company failed tried to buy Bakkt, a cryptocurrency trading site.
On Saturday, Eric Trump described the Trump coin as “the most popular digital meme in the world” and said World Liberty was “just the beginning.”
Anthony Scaramucci, Trump’s former communications director turned critic, also criticized the launch. “Trump’s memecoin is bad for [crypto] industry. Don’t be fooled,” he wrote on X.
A spokesman for Trump’s transition team did not immediately respond to a request for comment.
Jonathan Bixby, a crypto entrepreneur, said Trump’s memecoin is likely to be “the start of what’s called a ‘banana zone,'” a crypto-trading term where prices can suddenly spike.
“It lends legitimacy to these funds and invites every celebrity to come back and start promoting. The next few months are going to be wild.”
The price of Solana, the blockchain used by Trump coin and many other memecoins, has hit a record high high 295 dollars on Sunday. The US regulator, the Securities and Exchange Commission, is expected to make a decision in the coming months on whether US equity funds should be allowed to invest directly in Solana.
Click here to visit your digital assets dashboard
