Key Takeaways
Donald Trump’s latest move into the crypto space has paid off in a big way.
The incoming president launched his official memecoin, TRUMP, on Jan. 17, and within just 48 hours, it soared to become the 15th largest asset with a $12 billion market cap.
Known for his previous NFT card launches, which netted him millions, Trump’s latest venture has caught everyone’s attention.
The token’s meteoric rise has added nearly $50 billion to Trump’s wealth and continues to add more.
When Trump announced the launch of the memecoin, it came with a 200 million token supply and was built on the Solana blockchain.
Users could purchase the token with both debit cards and crypto, making it accessible to a wide audience.
The launch quickly attracted the attention of major crypto exchanges, including Coinbase , Binance , Robinhood , and Bybit , which listed the token within hours.
The resulting frenzy helped drive billions of dollars in trading volume.
By Sunday, Jan. 19, the token’s price touched a new all-time high of $76, with its fully diluted value nearing $80 billion.
The TRUMP token surged by an astounding 28,000% in just 36 hours, becoming one of the most traded cryptocurrencies over the weekend.
As the token saw massive buying pressure, the market also experienced a sharp imbalance, with 38,500 sellers for every 13,300 buyers. This led to a staggering $1.1 billion in buy volume versus $850 million in sales, highlighting the frenzy surrounding the new token.
Trump’s wealth has taken a massive leap thanks to his near-total control of the TRUMP token.
According to the token’s website, Trump-affiliated companies, including CIC Digital and Fight Fight Fight, own 80% of the total token supply.
With a market cap of $12 billion and a fully diluted value of over $60 billion, Trump’s entities control about $48 billion worth of TRUMP tokens.
Currently, 200 million tokens are in circulation, with only 10% available for the community to purchase. On Sunday, the memecoin had 781,223 wallets holding TRUMP, with six wallets each holding over $600 million. Trump’s share is valued at $55.4 billion, based on his holdings.
Despite the launch’s overwhelming success, the concentration of the token supply in Trump’s hands has raised concerns about the potential for market manipulation, especially as the token’s value fluctuates.
The TRUMP token’s rise wasn’t without its turbulence.
After hitting its all-time high of $75 on Sunday, the token plummeted by 40% within hours, sparking fears of a pump-and-dump.
The price quickly fell from over $75 to $38 in just 30 minutes, only to recover nearly 20% to trade above $60.
Some believe that the launch of Melania Trump’s own memecoin played a role in the TRUMP token’s sharp drop.
The announcement of Melania’s coin added to the family drama surrounding the launch, with many speculating that her token was meant to capitalize on the success of her husband’s venture.
Crypto enthusiasts have also turned their attention to Barron Trump, the youngest Trump family member, with some speculating that he may be next in line to release a memecoin of his own.
While the TRUMP memecoin has certainly captured attention, it has also sparked criticism from some of Trump’s pro-crypto supporters.
Many were disappointed by the timing of the token launch, with the belief that it sent the wrong message to the broader crypto community.
Critics argue that a focus on memecoins, rather than utility-driven crypto projects, undermines the promise of a decentralized and robust crypto economy.
Even MicroStrategy founder Michael Saylor, a prominent Bitcoin advocate, mocked the TRUMP coin launch, reminding Trump of his previous pledge to build a Bitcoin reserve.
Several voices emerged, asking the President-elect to use the proceeds from the memecoin for a good cause.
Balaji Srinivasan, former CTO of Coinbase, suggested Trump airdrop $100 worth of TRUMP to his 77 million voters.