Trump-backed memecoin value tops $12bn as crypto industry hopes to soar

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The total value of a memecoin in circulation backed by Donald Trump has hit more than $13bn, sparking accusations that the incoming president is exploiting the enthusiasm of his supporters for financial gain.

Since its launch on Friday night, the $TRUMP cryptocurrency – in which the Trump family business owns a direct stake – has risen from about $6 to $67, making the value of the coins in circulation worth about $13.2bn, according to data from Coinbase.

The rapid increase in the value of the token has already made it one of the largest “memecoins” in the crypto market, or tokens that represent online viral moments. Originally developed as an insider industry joke, memecoins have no business model or cash flow.

The number of new memecoins and their value has jumped 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 Truth Social website shortly after a gala in Washington for crypto executives and politicians to celebrate his inauguration, which takes place on Monday. The accompanying website featured a picture of Trump raising his fist and described the coin as “the only official Trump meme”.

About 80 percent of the tokens will be held by CIC Digital, which is affiliated with the Trump Organization, and a CIC-owned business called Fight Fight Fight LLC, according to the token’s website — a reference to the assassination attempt on Trump. in the end. summer.

Tokens held by insiders will begin to be unlocked for sale in the next three to 12 months and will be available for sale during Trump’s four-year term.

“Trump owns 80 percent and timing (the) launch hours before the inauguration is predatory and many will probably be hurt by it,” said Nick Tomaino, a venture capitalist, of X.

The launch caught many in the crypto market by surprise but Binance, Coinbase and Kraken, three of the biggest cryptocurrency exchanges, all have since announced plans to sell the Trumpet coin in their markets.

The Trump family has a growing interest in cryptocurrency. The US president-elect and his three sons already 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 hottest digital meme in the world” and said that World Liberty is “just getting started”.

Anthony Scaramucci, Trump’s former communications director turned critic, was also hit with the launch. “The Trump memecoin stuff is bad for the (crypto) industry. Don’t fool yourself,” he wrote on X.

A spokeswoman for the Trump transition team did not immediately respond to a request for comment.

Jonathan Bixby, a crypto entrepreneur, said that Trump’s memecoin is likely to be “the opening gun to the so-called ‘banana zone’”, a crypto trading term where prices can suddenly rise.

“It gives legitimacy to these properties and invites every celebrity to come back and start promoting. These next few months are going to be wild.”

The price of Solana, the blockchain used by the Trump coin and many other memecoins, has hit a record as high as $295 on Sunday. The US regulator, the Securities and Exchange Commission, will make a decision in the coming months on whether to allow the US stock market to invest directly in Solana.