Presidential memcoin: what is behind the OFFICIAL TRUMP (TRUMP) cryptocurrency?
On January 18, 2025, US President-elect Donald Trump announced the launch of his memcoin called OFFICIAL TRUMP (TRUMP). This event has generated significant interest in the cryptocurrency community and the general public.
Memcoins typically have no fundamental value and are created as a joke or to draw attention to certain events (CoronaCoin (NCOV) — a pandemic memcoin, BREXIT Token — a memcoin of the UK's exit from the EU) or personalities (KANYE (YE) — Kanye West's token, ELON Coin (ELON) — a coin in honor of Elon Musk). However, the launch of $TRUMP was a remarkable phenomenon in the digital asset market.
The launch and initial market reaction
Immediately after the announcement of TRUMP's launch, its value began to skyrocket. The coin initially traded at around $10, but in less than a day, its value soared to $75 per token. Its market capitalization reached $14 billion, putting TRUMP among the top 20 largest cryptocurrencies in the world, according to CoinMarketCap. However, this volatility also led to significant price fluctuations, and the token's value soon dropped to $52.
Ownership structure and token distribution
According to TRUMP's official website, 80% of the total tokens are owned by Trump-affiliated companies:
- CIC Digital LLC licenses Donald Trump's image for use in non-fungible tokens (NFTs). According to financial disclosures, the company generated $9.7 million in revenue from selling NFTs featuring Trump's image and owns a cryptocurrency wallet with a balance of at least $1 million in Ethereum.
- Fight Fight Fight LLC is associated with the release of a memecoin called FIGHT, inspired by the moment Donald Trump got punched in the ear on July 14, 2024.
The remaining 20% was distributed to the general public. This distribution raised concerns among experts who saw a potential conflict of interest and the possibility of market manipulation. For example, venture capitalist Nick Tomaino noted, "The fact that Trump owns 80% of the tokens and launches them shortly before the inauguration is predatory, and many will likely be hurt by it."
MELANIA's launch and its impact on TRUMP
On January 19, 2025, Melania Trump, wife of Donald Trump, announced the launch of her own memcoin, MELANIA. The move led to additional volatility in the market, with the value of TRUMP temporarily dropping 45%, from $76 to $38, but then partially recovering to $58. MELANIA's market capitalization quickly reached $8.9 billion, indicating high investor interest in these tokens.
Criticism and concerns
The launch of the TRUMP and MELANIA memcoins has drawn criticism from some experts and public figures. Former White House Communications Director Anthony Scaramucci called the release of these coins "Idi Amin-level corruption" and expressed concern that anyone in the world can now transfer money to the US President's account with a few clicks of a button. Other critics noted that such actions could negatively impact the reputation of the cryptocurrency industry and create additional risks for investors.
The future of the TRUMP memcoin
Despite the initial hype, the future of the OFFICIAL TRUMP memcoin remains uncertain. Experts warn of such tokens' high volatility and lack of fundamental value. Cryptocurrency analysts note that the value of TRUMP will depend on political news in the United States and can fluctuate significantly. They also emphasize that cryptocurrencies are often created for short-term gains and can quickly lose popularity.