The launch of the cryptocurrency meme TRUMP (CRYPTO: TRUMP) by the president-elect Donald Trump Saturday caused quite a stir in the crypto industry and with government watchdogs.
What happened : The market value of the meme cryptocurrency exploded to $5.6 billion within 24 hours of its launch, suggesting a potential financial benefit for Trump-linked entities.
The token, which provides direct financial benefits to the president-elect’s family, immediately sparked backlash from government watchdogs. They perceive it as a violation of ethical standards and a way for the president-elect to monetize his international prestige.
Unlike other digital assets, the TRUMP meme coin is not tied to any underlying company. It is therefore an extremely speculative investment for investors and potentially very lucrative for its creators.
According to data from Benzinga Pro, the meme cryptocurrency’s market value reached $14.2 billion early Sunday, up from $4.9 billion just 12 hours earlier, or almost three times as much.
The meme coins started selling for $10 apiece before climbing to around $70 on Sunday morning.
At the time of writing, TRUMP was trading at $56.02, up almost 95% in the last 24 hours.
According to a Bloomberg report, CIC Digital LLCa subsidiary of the Trump Organization, and a related entity, Fight Fight Fight LLChold 80% of the digital asset. These assets will be released gradually over a period of three years.
-The meme cryptocurrency’s official website says their holdings will be unlocked over a three-year period, with 200 million tokens available immediately and a billion in circulation over the next three years.
Despite the controversy surrounding its launch, the crypto industry, which has felt unfairly targeted under the president’s administration Joe Bidenwelcomed the new meme corner. Cryptocurrency companies reportedly spent $10 million on Trump’s inauguration, indicating their support for the incoming administration.
Why it matters : The launch of the Trump meme coin is a major event for the crypto industry. This represents a shift in the relationship between politics and cryptocurrencies, with a high-profile political figure directly benefiting from a digital asset.
This could potentially influence future political and financial strategies, as well as regulatory approaches to crypto.
However, the controversy surrounding the launch also highlights the ethical concerns and potential conflicts of interest that can arise when political figures engage in such endeavors.
What does that mean
Solana Skyrockets, Sees 15% Increase Following Launch of Trump Meme Coin
