Trump-backed memecoin’s value tops $13 billion as crypto industry hopes rise

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The total value of meme coins in circulation backed by Donald Trump has exceeded $13 billion, sparking accusations that the incoming president is exploiting the enthusiasm of his supporters for financial gain.

Since its launch on Friday night, the Trump cryptocurrency, in which the Trump family business directly holds a stake, has surged from about $6 to $67, leaving the currency in circulation worth about $13.2 billion, according to Coinbase data on Sunday.

The token’s rapid growth in value has made it one of the cryptocurrency market’s largest “memecoins,” tokens that represent viral moments online. Memecoins were originally developed as an industry joke among industry insiders and had no business model or cash flow.

Since Trump won the election in November, the number of new meme coins and their value have grown significantly. Industry executives and traders are betting the new administration will take a friendlier approach to crypto assets.

Trump’s coin was launched on his Truth social site on Friday night, shortly after a gala in Washington for cryptocurrency executives and politicians to celebrate his inauguration, which is set to take place on Monday. The accompanying website shows a photo of Trump with his fist raised in the air and describes the coin as “the only official Trump meme.”

According to information on the token’s website, approximately 80% of the tokens will be held by CIC Digital, which is affiliated with the Trump Group, and a company co-owned by CIC called Fight Fight Fight LLC – a reference to the last assassination attempt on Trump. attempt summer.

Tokens held by insiders will begin to be unlocked for sale in the next 3 to 12 months and can be sold during Trump’s four-year term.

“Trump owns 80% of the shares, and the timing is right. [the] The release hours before the inauguration was predatory and many people could have been harmed by it.

The launch surprised many in the cryptocurrency market, but the three major cryptocurrency exchanges Binance, Coinbase and Kraken have since announced plans to trade Trump Coin on their markets.

The Trump family has become increasingly interested in cryptocurrencies. The US president-elect and his three sons have been promoting World Liberty Financial, a cryptocurrency venture founded by his long-time business partner and others, while Trump’s social media company seeks to acquire cryptocurrency trading platform Bakkt , but without success.

Eric Trump on Saturday described Trump Coin as “the hottest digital meme on the planet” and said freedom in the world “has only just begun.”

Anthony Scaramucci, Trump’s former communications director and later critic, also blasted the conference. “The Trump meme coin thing is bad for people [crypto] industry. Don’t kid yourself,” he wrote on X.

A spokesman for the Trump transition team did not immediately respond to a request for comment.

Cryptocurrency entrepreneur Jonathan Bixby says Trump’s meme coin is likely “a shot in the arm of the so-called ‘banana zone,’” a cryptocurrency trading term in which prices There may be a sudden surge.

“It gives legitimacy to these properties and invites every celebrity to come back and start promoting. The next few months are going to be crazy.

The price of Solana, the blockchain used by Trumpcoin and many other memecoins, hit an all-time high of $295 on Sunday. U.S. regulator the Securities and Exchange Commission will rule in the coming months on whether U.S. stock market funds should be allowed to invest directly in Solana.