US President-Elect Donald Trump has launched his own cryptocurrency, which quickly soared in value.
Coin Release and Background
The release of the meme coin, $Trump, comes as he prepares to take office on Monday as the 47th president of the US. The venture was coordinated by CIC Digital LLC, an affiliate of the Trump Organization, which has previously sold Trump-branded shoes and fragrances.
Value Surge and Ownership
By Saturday afternoon, hours after its launch, the value of the coins for $Trump reached nearly $5.5bn (£4.5bn), according to CoinMarketCap.com. CIC Digital LLC and Fight Fight Fight LLC, a company formed in Delaware earlier this month, own 80% of the tokens. It is unclear how much money Trump might make from the venture.
Criticism and Market Concerns
Critics accused Trump of cashing in on the presidency. “Trump owning 80 percent and timing the launch hours before inauguration is predatory and many will likely get hurt by it,” Nick Tomaino, a crypto venture capitalist, said in a social media post. Such digital tokens are notorious for speculators using hype to pump up the value before selling at the top of the market, leaving latecomers to count their losses as the price crashes.
Regulatory Context and Trump’s Shift
Cryptocurrency investors are hoping the Trump administration will boost the industry. President Joe Biden’s regulators cited concerns about fraud and money laundering as they cracked down on crypto companies by suing exchanges. Trump was previously skittish about cryptocurrency, but at a Bitcoin conference in Nashville last year, he said America would be “the crypto capital of the planet” once he returned to Washington.
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