In the days leading up to his inauguration, US President-elect Donald Trump caused a stir by introducing a new cryptocurrency, which quickly became a phenomenon in the financial world.
The “Trump Coin” a so-called meme coin, experienced an unprecedented surge in value in a matter of hours, with a market capitalization of over $72 billion. If the wallet controlling 80% of the supply indeed belongs to Trump, his net worth would have increased by over $56 billion over the weekend, making him wealthier than Elon Musk at a price of $500 per coin and surpassing the value of Bitcoin at $2,100.
The cryptocurrency, based on the Solana blockchain, was launched by Trump’s firm, CIC Digital LLC. Initially, 200 million tokens were released, with an additional 800 million to be issued in the coming years.
Reports indicate that the market capitalization of the Trump Coin skyrocketed by over 4,200% in a matter of minutes, reaching $3.3 billion. The token’s price rose to $72, catapulting the new cryptocurrency to the top three most valuable digital currencies.
Meme coins are digital currencies that gain value not through real economic factors, but through community hype and viral internet phenomena. The Trump Coin is a classic example of this type of cryptocurrency, with no underlying material value, existing solely on the enthusiasm of users for Donald Trump and the viral potential of his name.
Despite the rapid surge, critics warn of the high volatility of meme coins, viewing investments in these currencies as extremely speculative and risky. Their prices can quickly rise or fall, making them a risky investment.
Trump, who had previously been a vocal critic of cryptocurrencies, surprisingly expressed support for digital currencies during his last presidential campaign. He co-founded a crypto and investment platform, World Liberty Financial, with his sons in November, which also supports cryptocurrencies.
It appears that Trump is now using the Trump Coin as part of his financial strategy, supported by tech giants like Elon Musk. Musk’s influence as a crypto advocate could further boost Trump’s crypto activities and open up new dimensions in this market.
Whether the Trump Coin will show a stable value in the long term remains to be seen. However, the explosive demand and the massive value increase within a few hours demonstrate the immense potential of meme coins in the current digital age. Trump has succeeded in capturing the attention of the crypto community and significantly boosting the value of his meme cryptocurrency, a surprise that has left many in awe.