US President-elect Donald Trump has launched his own cryptocurrency, the market capitalization of which quickly soared to several billion dollars, the BBC reported on Sunday.
“Trump is launching $Trump meme coin as he prepares to take office as the 47th president of the United States on Monday, January 20. The venture is being coordinated by CIC Digital LLC, a subsidiary of the Trump Organization, which previously sold Trump-branded shoes and perfumes,” the BBC said.
It is noted that meme coins are used to increase the popularity of a viral Internet trend or movement, but they have no intrinsic value and are extremely volatile investments.
According to CoinMarketCap.com, by noon on Saturday, a few hours after the launch, $Trump had reached almost $5.5 billion.
CIC Digital LLC and Fight Fight Fight Fight LLC, founded in Delaware earlier this month, own 80% of the tokens. However, it is unclear how much money Trump can make from this venture.
“My new official Trump meme is here! It’s time to celebrate everything we stand for: victory,” Trump wrote on his Truth Social page, announcing the meme coins on the evening of January 17.
About 200 million digital tokens have already been issued, and another 800 million will be issued over the next three years, according to the cryptocurrency’s website. “This Trump meme honors a leader who doesn’t back down despite adversity,” the site says.
The BBC report also states that “the message also contains a disclaimer that the coin is ‘not intended to be the target’ of an investment opportunity or security, and ‘is not political’ and ”has no connection to any political campaign, political office or government agency.”
Such digital tokens are notorious for speculators using the hype to drive up the value before selling at the top of the market, leaving latecomers to count their losses as the price plummets. However, cryptocurrency investors are hopeful that the Trump administration will promote the industry.
President Joe Biden’s regulators have expressed concerns about fraud and money laundering as they cracked down on crypto companies by suing these exchanges.
In the past, Trump has not shown much favor for cryptocurrencies, but last year at a bitcoin conference in Nashville, he said that America would become the “crypto capital of the planet” when he returned to Washington.
His sons Eric and Donald Jr. announced their own cryptocurrency venture last year.
