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A memecoin linked to Donald Trump has skyrocketed in value, reaching over $12 billion. This surge has led to criticism that the soon-to-be president may be leveraging his followers’ support for financial gain.
Launched just last Friday, the $TRUMP cryptocurrency—a digital asset in which Trump’s family business holds a direct stake—has seen its price climb from approximately $6 to $61. According to data from Coinbase, this sharp increase has pushed the total market cap of the coin to about $12.1 billion.
This rapid rise has catapulted $TRUMP into one of the top spots among “memecoins” in the cryptocurrency market. Originally created as an industry in-joke, memecoins are tokens associated with viral online moments and lack traditional business models or revenue streams.
Following Trump’s electoral win in November, there’s been a noticeable uptick in both the number and valuation of memecoins. Many within the industry speculate that the new administration might adopt a more favorable stance towards cryptoassets.
The launch of Trump’s coin was announced on his Truth Social platform on Friday evening, after a lavish event in Washington celebrating his forthcoming inauguration on Monday with crypto executives and political figures. The website for the coin features an image of Trump with his fist raised and bills it as “the only official Trump meme.”
It turns out that a significant chunk, around 80%, of these tokens is controlled by CIC Digital—an entity tied to the Trump Organization—and a joint venture, Fight Fight Fight LLC. This references the assassination attempt on Trump last summer.
These insider-held tokens are set to be gradually released, becoming available for sale throughout Trump’s upcoming four-year term, starting over the next three to twelve months.
Venture capitalist Nick Tomaino commented on X that the timing of the coin’s launch and Trump owning a major share “hours before inauguration” feels “predatory,” warning that many may suffer losses.
The crypto sector was initially taken aback by the launch of the Trump coin. Nevertheless, major exchanges like Binance, Coinbase, and Kraken have since revealed their plans to list this new asset.
Trump’s family appears to be increasingly involved in the cryptocurrency space. The president-elect, along with his sons, has been actively endorsing World Liberty Financial, a crypto endeavor founded by his longstanding business associates. Additionally, Trump’s social media venture had previously attempted a purchase of Bakkt, a digital trading hub, although unsuccessfully.
On Saturday, Eric Trump proclaimed the Trump coin as “the hottest digital meme on earth,” signaling that World Liberty is “just getting started.”
Anthony Scaramucci, who previously served as Trump’s communications director and is now a critic, criticized the move on X, saying, “The Trump memecoin stuff is bad for the [crypto] industry. Don’t delude yourself.”
Meanwhile, Solana—the blockchain platform powering Trump’s coin and numerous other memecoins—reached a record $295 per token on Sunday. The Securities and Exchange Commission in the US is expected to soon decide whether to allow US stock market funds to directly invest in Solana.
Currently, the Trump transition team has not issued a comment in response to inquiries about the situation.
