Donald Trump’s newly launched cryptocurrency, $TRUMP, has surged in value ahead of his second inauguration as President of the United States. Announced on Truth Social and X on Friday night, the “meme coin” has seen its price triple, climbing from $20 per token to over $70. By Sunday morning, trading volumes had exceeded $24 billion, and the token’s market capitalization had surpassed $14 billion.
Meme coins, a subset of cryptocurrencies, often derive their value from internet trends and social media hype rather than inherent utility. These assets are notorious for their price volatility. Last month, for example, the “Hawk Tuah girl” meme coin collapsed by 95% shortly after its release, dropping from a $500 million market capitalization to just $25 million. Investors in that coin have since lodged complaints with the Securities and Exchange Commission (SEC), alleging insider trading.
Crypto Advocates Eye Trump’s Second Term
The launch of $TRUMP comes as the cryptocurrency community eagerly anticipates a more favorable regulatory landscape under Trump’s leadership. The president-elect has pledged to make the United States the “crypto capital of the planet” and has signaled his commitment to the industry by nominating Paul Atkins as Chair of the SEC. Atkins, a vocal cryptocurrency advocate, previously co-chaired the Digital Chamber’s Token Alliance, a prominent crypto advocacy group.
In addition, Trump has promised to establish a 20-member crypto advisory council via executive order after taking office.
Despite the enthusiasm, concerns linger about the speculative nature of cryptocurrencies and the risks posed by their rapid price swings. Larisa Yarovaya, associate professor of finance at Southampton Business School, warned in a recent commentary for The Guardian that political endorsements of crypto could backfire.
“Strong political and government endorsements of crypto, paradoxically, pose a threat to its decentralisation ethos and could ultimately undermine the appeal of crypto assets,” Yarovaya wrote. “If, in 2025, the SEC turns a blind eye, consumers could be left entirely unprotected from financial losses – especially when another meme coin bubble bursts.”
Ownership and Revenue Streams
According to the official $TRUMP website, a Trump-owned company, CIC Digital LLC, controls 80% of the coin’s 200 million token supply, which is expected to increase to 1 billion over three years. Trump has previously capitalized on the crypto trend, releasing batches of digital trading cards during his presidential campaign that collectively generated over $4 million in revenue.
Meanwhile, Trump’s sons, Eric Trump and Donald Trump Jr., launched their own cryptocurrency venture, World Liberty Financial, in 2024. The endeavor has raised questions about potential conflicts of interest, particularly as leading crypto firms have contributed at least $10 million to Trump’s inauguration fund.
The $TRUMP website includes a disclaimer: “Trump Memes are intended to function as an expression of support for, and engagement with, the ideals and beliefs embodied by the symbol ‘$TRUMP’ and the associated artwork, and are not intended to be, or to be the subject of, an investment opportunity, investment contract, or security of any type.”
As excitement builds, the future of $TRUMP and the broader cryptocurrency market under the incoming administration remains a subject of intense speculation.
