Trump-backed memecoin value hits $13 billion as crypto industry hopes rise

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The total value of a circulating memecoin backed by Donald Trump has reached more than $13 billion, sparking accusations that the incoming president is exploiting the enthusiasm of his supporters for financial gain. main.

Since its launch on Friday night, the $TRUMP cryptocurrency – in which the Trump family business owns a direct stake – has skyrocketed from around $6 to $67, causing the value of the coin in circulation to rise. worth about $13.2 billion, according to data from Coinbase on Sunday. .

The token’s rapid rise in value has made it one of the cryptocurrency market’s biggest “memecoins,” or tokens that represent viral moments online. Originally developed as an industry insider joke, memecoin has no business model or cash flow.

The number of new memecoins and their value has skyrocketed since Trump’s election victory in November. Industry executives and traders are betting that the new administration will adopt a friendlier approach with crypto assets.

Trump’s coin was launched Friday night on his Truth Social website shortly after a gala in Washington for crypto executives and politicians celebrating his inauguration, which took place on Monday. The accompanying website shows an image of Trump with a raised fist and describes the coin as “the only official Trump meme”.

About 80% of the tokens will be held by CIC Digital, a company affiliated with the Trump Organization, and a co-owned business of CIC called Fight Fight Fight LLC, according to the token’s website – hinting to the last attempt to assassinate Trump. summer.

Tokens held by insiders will begin to be unlocked for sale over the next three to 12 months and be available for sale during Trump’s four-year term.

“Trump owns 80% and chooses the moment [the] Nick Tomaino, a venture capitalist, said on X.

The launch surprised many in the cryptocurrency market but Binance, Coinbase and Kraken, three of the largest platforms electronic money have all announced plans to trade the Trump coin on their markets.

The Trump family is increasingly interested in cryptocurrencies. US President-elect and his 3 sons has been promoting World Liberty Financial, a cryptocurrency venture founded by his longtime business partners and others, while Trump’s social media company fails tried to buy Bakkt, a cryptocurrency trading venue.

On Saturday, Eric Trump described the Trump coin as “the hottest digital meme on earth” and said World Liberty is “just getting started.”

Anthony Scaramucci, Trump’s former communications director turned critic, also spoke at the launch. “Trump memecoins are bad for [crypto] industry. Don’t lie to yourself,” he wrote on X.

A spokesperson for Trump’s transition team did not immediately respond to a request for comment.

Jonathan Bixby, a cryptocurrency entrepreneur, said Trump’s memecoin will likely be “the opening salvo in the so-called ‘banana zone,’” a cryptocurrency trading term in which prices can spike .

“It gives legitimacy to these properties and it invites every famous person to come back and start advertising. The next few months are going to be wild.”

The price of Solana, the blockchain used by the Trump coin and many other memecoins, has hit a record high of $295 on Sunday. US regulator the Securities and Exchange Commission will rule in the coming months on whether to allow US stock market funds to invest directly in Solana.