 "Donald Trump launches his own meme coin: Here's why it soared despite having no economic value")
President-elect Donald Trump has entered the cryptocurrency market, launching a digital token called $TRUMP. The meme coin, unveiled late Friday (January 17), sparked a buying frenzy that sent its market capitalisation surging to nearly $6 billion by Saturday morning.
In posts on his Truth Social platform and X, Trump announced the cryptocurrency as a tribute to his leadership, with the coin’s official website calling it a celebration of “a leader who doesn’t back down, no matter the odds.”
The announcement has fuelled widespread interest, despite having little actual utility.
The launch follows an earlier initiative by Trump-linked businessmen, who introduced a crypto platform called World Liberty Financial in October.
What is $TRUMP?
Meme coins like $TRUMP are typically designed to capitalise on the popularity of a public figure, movement, or internet trend.
The official website for $TRUMP says 200 million coins have been issued, with plans to release an additional 800 million over the next three years. At current valuations, the coins yet to be issued would be worth about $24 billion.
The cryptocurrency is being managed by Fight Fight Fight LLC. The company has not disclosed how much Trump has earned from the initial launch.
Unlike cryptocurrencies such as Bitcoin or Ethereum, meme coins have no intrinsic economic or transactional value and are often considered tools for speculative trading.
Why did $TRUMP soar in value?
Despite its lack of inherent utility, $TRUMP saw a massive surge in market capitalisation due to its association with Trump and the perceived legitimacy of the launch.
Announcements made on Trump’s official Truth Social and X accounts reassured investors, especially as the project involves CIC Digital LLC, a company Trump previously used to sell non-fungible tokens (NFTs).
Impact Shorts
More ShortsIt is likely that the coin’s popularity is driven by speculative enthusiasm and Trump’s cult-like following among supporters.
This can be placed in the context of Trump’s pivot from crypto scepticism to championing digital currencies during his 2024 presidential campaign. His promises to loosen crypto sector regulations have also boosted traders’ confidence.
With inputs from agencies
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