US President-elect Donald Trump launched his own cryptocurrency, the market value of which quickly rose to several billion dollars.
His launch of the meme coin, $Trump, comes as he prepares to take office on Monday as the 47th president of the United States.
The project was coordinated by CIC Digital LLC — an affiliate of the Trump Organization — which previously sold Trump-branded shoes and perfume.
Meme coins are used to build popularity for a viral internet trend or movement, but they lack intrinsic value and are considered highly volatile investments.
By Saturday afternoon, hours after its launch, the market value of Trump stock had reached nearly $5.5bn (£4.5bn), according to CoinMarketCap.com.
CIC Digital LLC and Fight Fight LLC, a company incorporated in Delaware earlier this month, own 80% of the tokens. It is unclear how much money Trump might make from this project.
“The new official Trump meme is here! It's time to celebrate everything we stand for: winning!” Trump wrote on his social media platform Truth Social when he announced the meme currency on Friday night.
The currency's website said that about 200 million digital currencies have been issued and another 800 million will be issued in the next three years.
The site said: “This is a Trump meme that celebrates the leader who does not back down, no matter the difficulties.”
It included a disclaimer noting that the coin is “not intended to be or be the subject of” an investment opportunity or security and that it is “non-political and has no connection” with any political campaign, political office or government agency.
Critics accused Trump of taking advantage of the presidency.
“Trump owning 80% of the stock and timing his launch hours before the inauguration is predatory and will likely hurt many,” Nick Tomaino, a cryptocurrency venture capitalist, said in a social media post.
These digital tokens are popular with speculators using hype to increase value before selling at the top of the market, leaving latecomers to count their losses as the price collapses.
Cryptocurrency investors are hoping that the Trump administration will boost the industry.
President Joe Biden's regulators have cited concerns about fraud and money laundering as they crack down on cryptocurrency companies by suing exchanges.
Trump has previously been concerned about cryptocurrencies, but he said at a bitcoin conference in Nashville last year that America would be the “cryptocurrency capital of the planet” once he returned to Washington.
His sons Eric and Donald Jr. announced their own cryptocurrency venture last year.
