What is Trump’s meme coin $TRUMP, whose valuation has skyrocketed by over 300% in a day

The coin’s value skyrocketed by over 300% within a day, peaking at $75 early Sunday before stabilising at $46. As of Sunday evening, it had a market capitalisation of $9.36 billion.

My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING! Join my very special Trump Community. GET YOUR $TRUMP NOW. Go to https://t.co/GX3ZxT5xyq — Have Fun! pic.twitter.com/flIKYyfBrC

— Donald J. Trump (@realDonaldTrump) January 18, 2025

According to its developers, the coin has an initial supply of 200 million tokens, with plans to expand to 1 billion over the next three years.

However, 80% of the tokens are controlled by Trump-affiliated companies, CIC Digital LLC and Fight Fight Fight LLC, which stand to gain from trading revenues.

Despite its political branding, the coin’s website emphasises that $TRUMP is not intended to be an investment or linked to any government office or campaign.

Cryptocurrency and Trump’s vision

Trump has positioned himself as a pro-crypto leader, aiming to make the US a global hub for cryptocurrency. His election victory has already boosted the market, with Bitcoin surpassing $100,000 shortly after his win.

Trump has proposed reducing regulatory burdens on crypto firms and establishing a bitcoin reserve as part of a broader policy initiative.

He has also pledged to issue an executive order prioritising cryptocurrency and forming a new advisory council to work with the industry.

Ethical concerns and criticism

The launch of $TRUMP has raised concerns about the ethics of using political influence to promote a personal financial venture.

With significant portions of the coin’s supply under Trump-linked entities, critics argue that this venture could blur the lines between personal profit and public office.

A Family Affair: Melania Trump’s coin

Adding to the controversy, incoming First Lady Melania Trump has launched her own cryptocurrency, $MELANIA, also hosted on the Solana blockchain. Trump supported her initiative by retweeting her announcement.

A growing business portfolio

This cryptocurrency venture is the latest addition to Trump’s extensive merchandise offerings, including NFTs, branded watches, and limited-edition products.

While supporters see it as entrepreneurial innovation, others view it as an unprecedented intertwining of business and politics.

The $TRUMP coin’s rapid rise underscores the influence of Trump’s brand, but it also leaves lingering questions about the ethical implications of mixing political leadership with personal profit.