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The total value of the memecoin backed by Donald Trump in circulation has reached more than $13 billion, sparking accusations that the incoming president is exploiting the enthusiasm of his supporters for financial gain.
Since its launch on Friday evening, the Trump cryptocurrency — in which the Trump family company has a direct stake — has risen from about $6 to $67, putting the value of the coins in circulation at about $13.2 billion, according to data from Coinbase on Sunday. .
The rapidly increasing value of this token has already made it one of the largest “memes” in the cryptocurrency market, or tokens that represent viral moments online. Memes were initially developed as an inside joke in the industry, and have no business model or cash flows.
The number and value of new meme coins has jumped since Trump won the election in November. Industry executives and traders are betting that the new administration will adopt a friendlier approach to crypto assets.
Trump's coin was launched Friday evening on his website Truth Social shortly after a party in Washington for cryptocurrency executives and politicians to celebrate his inauguration, which will take place on Monday. The accompanying website shows an image of Trump raising his fist and describes the coin as “Trump's only official meme.”
About 80 percent of the tokens will be held by CIC Digital, affiliated with the Trump Organization, and a CIC-owned company called Fight Fight Fight LLC, according to the token's website — a reference to the attempted assassination of Trump last summer.
The tokens held by insiders will open for sale in the next three to 12 months and will be available for sale during Trump's four-year term.
“Trump owning 80 percent of the shares and timing the launch hours before the inauguration is predatory and will likely hurt many,” Nick Tomaino, a venture capitalist, said on X.
The launch surprised many in the cryptocurrency market, with the exception of Binance, Coinbase, and Kraken, three of the largest companies. Cryptocurrency All exchanges have since announced plans to trade Trump Coin on their markets.
The Trump family has shown an increasing interest in cryptocurrencies. The US President-elect and his three children Promoted World Liberty Financial, a cryptocurrency project created by his longtime business partners and others, while Trump's social media company did not succeed I tried to buy Bakkt, a place to trade cryptocurrencies.
On Saturday, Eric Trump called Trump Coin “the hottest digital meme on Earth” and said global freedom is “just beginning.”
Anthony Scaramucci, Trump's former communications director turned critic, also criticized the launch. “Trump memecoin material is harmful to the (cryptocurrency) industry. Don’t kid yourself,” he wrote on X.
A spokesman for Trump's transition team did not immediately respond to a request for comment.
Jonathan Bixby, a cryptocurrency entrepreneur, said Trump's memecoin is likely to be “the opening shotgun in the so-called 'banana zone,'” a cryptocurrency trading term in which prices can suddenly rise.
“It gives legitimacy to these assets and invites all the celebrities to come back and start promoting. The next few months are going to be very difficult.”
The price of Solana, the blockchain used by Trump Coin and many other meme coins, has reached a record high High $295 Sunday. The US Securities and Exchange Commission, a US regulatory body, is scheduled to issue a decision in the coming months on whether to allow US stock market funds to invest directly in Solana.
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