US President Donald Trump’s newly launched cryptocurrency token has skyrocketed, reaching a market value exceeding $10 billion. The token’s surge coincided with optimism surrounding his crypto-friendly administration, which briefly propelled Bitcoin to a record high.
The memecoin, branded $TRUMP, surged from under $10 on Saturday to a peak of $74.59 before retreating to $33.88 by Monday, according to cryptocurrency tracker CoinGecko. The token debuted on Friday, initially trading at less than $10, before experiencing a volatile rally.
In parallel, another Trump-linked crypto initiative, World Liberty Financial, announced it had completed an initial token sale, raising $300 million, with plans for further token issuance.
Bitcoin, the largest cryptocurrency by market cap, hit a record high of $109,071 on Trump’s inauguration day as the 47th US President. However, it later retraced some gains, trading at $101,867.40 as of Monday. The launch of the Trump and Melania cryptocurrencies, the latter unveiled on Sunday, further bolstered market activity. Both tokens were built on the Solana blockchain, whose coin also reached an all-time high of $294.33 over the weekend.
Market participants remain cautious about the speculative nature of such assets. Matthew Dibb, Chief Investment Officer at Astronaut Capital, noted: “In the short term, this could turn into a sell-the-news event. Bitcoin has already pulled back, and we anticipate further volatility and possible selloffs.”
Eighty percent of the $TRUMP tokens are reportedly controlled by CIC Digital, a Trump-affiliated entity, and another group named Fight, Fight, Fight, according to the coin’s official website. The site describes the tokens as a symbolic expression of support for Trump’s ideals rather than an investment or security.
Analysts have raised concerns about the volatility of such meme-based cryptocurrencies. Grzegorz Drozdz, a market analyst at Conotoxia Ltd, labeled these tokens as speculative assets, prone to sharp price swings. Meanwhile, independent crypto analyst Justin D’Anethan remarked that the Trump coin blurs the lines between politics, finance, and influence, blending the digital asset space with the political arena.
Optimism surrounding potential policy changes under Trump’s administration has fueled crypto market momentum in recent months. Investors are anticipating regulatory shifts and potential strategic actions like a Bitcoin reserve. However, Dibb cautioned that such developments are likely to unfold gradually rather than in immediate sweeping reforms.
The excitement has undeniably highlighted the intersection of digital currencies and politics, marking a new chapter in the evolving crypto landscape.
