SINGAPORE (Reuters) – Donald Trump's newly launched cryptocurrency soared on Monday to exceed $9 billion in market cap, attracting trading volume in the billions just hours before the US president-elect returns to the White House.
The memecoin, also known as TRUMP, rose 73% to $46.06 during Asian trading hours on Monday, giving it a market value of about $9.2 billion, according to CoinMarketCap. The 24-hour trading volume reached $42.2 billion.
Trump on Friday launched the digital token bearing an image from his assassination attempt in July, expanding his interests in cryptocurrencies that already include World Liberty Financial.
Even participants in the cryptocurrency community were surprised by the launch of the Trump meme coin.
“While it is tempting to dismiss this as just another Trump spectacle, the launch of an official Trump token opens a Pandora's Box (OTC:) of ethical and regulatory questions,” said Justin DeNithan, an independent cryptocurrency analyst based in New York. Hong Kong.
While the currency represents a blend of the world of decentralized finance (DeFi) into the political arena, it also “blurs the lines between governance, profit and influence,” Danithan said.
“Should public figures, especially those with such political influence, exercise this kind of influence in speculative markets? This is a question that regulators are unlikely to ignore,” he said.
Peter Schiff, chief economist and global strategist at Euro Pacific Asset Management, pointed to the jump in the value of the Trump dollar and called it the new digital gold, on the X messaging platform.
Trump has promised to be a “crypto president” and is expected to issue executive orders aimed at reducing regulatory barriers related to cryptocurrencies and promoting widespread adoption of digital assets.
He is scheduled to assume the presidency at noon EST (1700 GMT) on Monday.
The prospect of looser regulations around cryptocurrency policy was met with much fanfare by the industry and led to a significant rally in Bitcoin after Trump won the election in November.
The world's largest cryptocurrency traded 2.6% lower at $101,826.51 on Monday, and has risen more than 10% for the month so far.
