In a surprising turn of events, former U.S. President Donald Trump has launched a new cryptocurrency known as TRUMP coin, leading to backlash from the cryptocurrency community. Just hours before his inauguration, the coin made its debut on Trump’s social media platforms and quickly surged in popularity, limited only in utility to entertainment and speculation—qualities that have raised eyebrows among industry experts. Criticism has been vocal, especially after Trump himself stated that he “doesn’t know much” about cryptocurrencies, which many feel trivializes the industry.
The initial rise in TRUMP coin’s value saw it reach as high as $75 within a day. However, this surge couldn’t be sustained, and the value has since dropped to around $39. Industry insiders are expressing concern that Trump’s lack of familiarity with cryptocurrency reflects poorly on both the project and the broader crypto landscape. Danny Scott, CEO of CoinCorner, did not mince words when he remarked that Trump’s nonchalant attitude creates a “mockery” of the crypto world, categorizing the entire venture as a publicity stunt rather than a serious business undertaking.
The president’s flippant comments on the coin’s successful launch have further fueled skepticism within the community. When asked about the significant financial backing behind TRUMP coin, which sources reported had raised billions, Trump dismissed it as “peanuts” compared to the wealth of tech billionaires. This attitude toward substantial investments raises questions among analysts and investors who were hoping for more responsible engagement with the cryptocurrency sector.
Meme-coins—those designed primarily for fun or as a form of speculation—are typically utilized to engage fans and create a sense of community support around a particular figure or trend. Trump’s introduction of his unique coin is not without precedent, as he has previously dabbled in the crypto space, launching a series of non-fungible tokens (NFTs) featuring his likeness in various heroic poses in 2022, resulting in significant profits.
Despite the controversy, some industry experts view the launch as indicative of an emerging trend in the marketplace. Jeff Dorman from Arca remarked online that the TRUMP token could pave the way for other brands, municipalities, or organizations to explore cryptocurrencies as a tool for generating capital and enhancing customer engagement. Yet, the sentiment in the broader crypto community leans heavily toward skepticism, and many are eagerly awaiting Trump to deliver on his promises to support and develop the U.S. cryptocurrency market.
A recent Executive Order signed by Trump aims to form a group dedicated to exploring regulatory frameworks for cryptocurrencies as part of a national strategy, which could indicate a shift in policy priorities as it relates to digital currency. However, many remain cautious. Trump previously declared his intention to make the United States the “crypto capital of the planet,” but critics point out that there has yet to be any substantial follow-up action regarding this promise.
Currently, TRUMP coin stands as the 25th highest valued cryptocurrency, boasting a market capitalization of around $8 billion. According to reports, the Trump team retains ownership of 80% of the coin, providing a substantial financial incentive to maintain and potentially benefit from its market value. Crypto researchers at K33 describe the arrangement surrounding TRUMP coin’s allocation as problematic for a meme currency, emphasizing that the economic setup could lead to a lack of actual investor protection against drastic market changes.
In parallel, Melania Trump also launched her own digital currency the evening before the inauguration, which initially peaked at a valuation of $700 million but has since seen a steep decline. Observations from industry professionals point out that the marriage of political figures to meme-coins could set a concerning precedent. Experts like Dan Hughes from Radix express alarm at the implications of celebrity endorsements in crypto markets, suggesting that they prioritize influencer dynamics over substantive value creation.
Grzegorz Drozdz, a market analyst, went further, asserting that the timing of these launches—particularly during a moment as significant as an inauguration—risks undermining the integrity and dignity of presidential leadership. As the dust settles around TRUMP coin, the ramifications for both the cryptocurrency market and the political landscape could have enduring impacts.