In a surprising move, US President-elect Donald Trump has launched his own cryptocurrency, which quickly soared in market capitalization to an impressive USD 14 billion, with the trading price now at USD 74 per token as of writing.
Donald Trump’s official meme coin, $TRUMP, hit USD 74 on Sunday evening, marking an increase of over 900% in the past 24 hours. It has become the third-largest meme coin by market capitalization, trailing only Dogecoin (DOGE) and Shiba Inu (SHIB), and surpassing Pepecoin (PEPE).
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
The release of the meme coin, $TRUMP, comes as Trump prepares to take office on Monday as the 47th President of the United States. Announcing the launch on Friday via his official X account, Trump declared, “My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING.”
Named $TRUMP, the project is a so-called meme coin, a type of cryptocurrency whose value is largely driven by the popularity of internet memes. The token, available on the Solana blockchain, rapidly increased in value, reaching a market cap of nearly USD 14 billion. As of Sunday evening, trading volume was recorded at USD 18 billion, according to CoinMarketCap.
Investment Insights
Meme coins are known for their high volatility and speculative nature, making them attractive to investors seeking rapid gains but also carrying significant risks. Here are some key points to consider:
High Volatility: Meme coins can experience dramatic price swings. While $TRUMP has seen a remarkable surge, it’s important to be prepared for potential sharp declines as well1.
Community Support: The success of meme coins often hinges on strong community backing and social media presence. Engaging with the community and staying informed about trends can be crucial.
Speculative Investments: Meme coins typically lack intrinsic value and are driven by market sentiment. Investors should be cautious and consider meme coins as part of a diversified portfolio.
Risk Management: Given the speculative nature of meme coins, it’s essential to have a solid risk management strategy in place. Setting stop-loss orders and only investing what you can afford to lose are prudent practices.
Long-Term Viability: While some meme coins have achieved significant success, their long-term viability remains uncertain. Investors should stay updated on developments and be ready to adapt their strategies.
Meme coins are used to build popularity for a viral internet trend or movement, but they lack intrinsic value and are extremely volatile investments.