The introduction of the $TRUMP cryptocurrency has sparked criticism, with some accusing the former president of leveraging his supporters' enthusiasm for personal financial gain.
Since its debut on Friday evening, the coin—partially owned by Trump's family business—skyrocketed from approximately $6 to a high of $75, pushing its market value to over $14 billion, as reported by Coinbase.
However, on Sunday, Melania Trump announced her own memecoin, $MELANIA. By the evening, her coin had achieved a market capitalization of $8.5 billion, according to DEX Screener data.
Following this announcement, the value of Trump's coin plummeted from $75 to just over half that amount, erasing about $7 billion from its market cap, based on Coinbase figures. It later regained some of its losses.
The swift rise of the Trump token positioned it among the largest «memecoins» in the crypto market—tokens that capture viral online moments but lack a business model or revenue streams. Initially conceived as an industry insider joke, memecoins have gained traction.
The proliferation and increasing value of new memecoins have accelerated since Trump's election victory in November. Industry insiders and traders anticipate that the new administration might adopt a more favorable stance towards crypto assets.
Trump's coin was launched on Friday evening via his Truth Social platform, shortly after a Washington gala for crypto executives and politicians celebrating his upcoming inauguration on Monday. The accompanying website features an image of Trump with a raised fist, branding the coin as «the only official Trump meme.»
According to the token's website, approximately 80% of the tokens will be held by CIC Digital, linked to the Trump Organization, and a CIC co-owned entity called Fight Fight Fight LLC—a nod to an assassination attempt on Trump last summer.
These insider-held tokens will begin unlocking for sale over the next three to twelve months and will be available throughout Trump's four-year term.
«Trump owning 80% and launching [the] coin hours before inauguration is predatory, and many might suffer as a result,» commented Nick Tomaino, a venture capitalist, on X.
The launch caught many in the crypto sphere off guard, yet major cryptocurrency exchanges Binance, Coinbase, and Kraken have all announced plans to list the Trump coin on their platforms.
The Trump family has shown increasing interest in cryptocurrency. The US president-elect and his three sons have been endorsing World Liberty Financial, a crypto initiative established by his long-term business partners and others. Meanwhile, Trump's social media company made an unsuccessful attempt to acquire Bakkt, a cryptocurrency trading platform.
Melania's «digital collectibles» are designed to «serve as an expression of support for and engagement with the values represented by the MELANIA symbol,» according to the launch statement. They are not intended as «investment opportunities, investment contracts, or securities of any kind.»