Explained: Donald Trump’s $TRUMP meme coin and its crypto impact
President-elect Donald Trump has entered the cryptocurrency space with the launch of the $TRUMP meme coin, a Solana-based digital asset marketed as a celebration of his 2024 election victory. The announcement has sparked mixed reactions, with the coin seeing explosive growth in value while raising eyebrows in the crypto industry.
What Trump Said About $TRUMP
Trump announced the launch on Truth Social, stating:
“My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING! Join my very special Trump Community. GET YOUR $TRUMP NOW.”
The promotional graphic featured Trump’s image on the coin with the words “Fight, Fight, Fight.”
Rapid surge in value
Since its launch, $TRUMP has skyrocketed from $0.18 to $22.94, marking a 253.75% increase in 24 hours. The coin currently has a market cap of $4.59 billion and a 24-hour trading volume of $5.77 billion, according to Binance.
Limited supply and ownership
The coin is capped at 200 million tokens initially, with plans to expand to 1 billion tokens over the next three years. Approximately 80% of tokens are controlled by Trump Organization affiliate CIC Digital LLC and Fight Fight Fight LLC, which will also share in revenue from trading activity.
Mixed Reactions
While Trump promoted $TRUMP as a celebration of “WINNING” and urged supporters to join the “Trump Community,” critics like former White House communications director Anthony Scaramucci called it “corruption” and warned it is “bad for the industry.” The coin has also faced skepticism due to its association with meme-based assets, which are known for their volatility.
- Price Surge: From $0.18 to $22.94 in 24 hours.
- Market Cap: $4.59 billion.
- Trading Volume: $6.64 billion since launch.
- Supply: 200 million tokens initially, increasing to 1 billion in three years.
Industry reactions and risks
The crypto community is divided. Meme coins, often tied to internet trends, are considered risky investments. Coinbase warns, “Engaging with meme coins carries risk and is something you should only attempt armed with research and experience.”
The bigger picture
Trump’s move aligns with his ambition to make the US the “crypto capital of the planet.” His election victory in 2024 had already boosted the crypto market, with Bitcoin crossing $100,000 shortly after Election Day. The global crypto market grew by $1.8 trillion in 2024, including $1 trillion since Trump’s win, according to CoinGecko.
As the $TRUMP meme coin continues to make waves, it remains to be seen whether this is a revolutionary step in crypto or merely a campaign strategy. For now, the coin has further ignited the cryptocurrency frenzy.