Meet $Trump: Donald Trump's cryptocurrency with market value of $5.5B
What's the story
US President-elect Donald Trump has launched his own cryptocurrency, called $Trump.
The digital coin became an instant hit, with its market value skyrocketing to a mind-boggling $5.5 billion within hours of launch.
The new "meme token" was launched by CIC Digital LLC, a company connected to the Trump Organization that has marketed Trump-branded products in the past.
Significance
A tribute to a 'leader who doesn't back down'
The new cryptocurrency was announced on Trump's Truth Social platform.
He called it "_ My NEW Official Trump Meme is HERE! It's time to celebrate everything we stand for: WINNING!"
The coin's website depicts it as a tribute to a "leader who doesn't back down."
Since its launch, about 200 million tokens have been issued with plans for another 800 million over the next three years.
Market response
$Trump's market performance and future plans
Despite being branded a "meme token," usually tied to internet fads and deemed extremely volatile, $Trump has experienced impressive market performance.
The coin's price surged from $0.18 to $22.94 within a day of its launch, a whopping 253.75% increase.
The website carries a disclaimer that the coin is "not an investment opportunity" and has no connection to any political campaign or office.
Ownership controversy
Criticism and control over $Trump
About 80% of the tokens are owned by CIC Digital LLC and Fight Fight Fight LLC. They will also split revenue from trading activity.
This control has drawn criticism, with crypto investor Nick Tomaino accusing Trump of profiting from his presidency by owning a large chunk of the coins and timing their launch just before his inauguration.
Crypto ambition
Trump's vision for US as 'crypto capital of the planet'
Despite being initially skeptical about cryptocurrency, Trump had said he envisioned the US to become "the crypto capital of the planet" at a Bitcoin conference in Nashville last year.
His sons, Donald Jr and Erik Trump, had also started their own crypto project last year.
This ambition of his comes after his 2024 election victory which had already sent the crypto market soaring, with Bitcoin crossing $100,000 days after Election Day.