US President-elect Donald Trump has unveiled his own cryptocurrency, $Trump, which rapidly surged in market capitalization to billions of dollars.
The release of the meme coin coincides with his impending inauguration on Monday as the 47th president of the US.
CIC Digital LLC, an offshoot of the Trump Organization known for marketing Trump-branded products, orchestrated the venture.
Meme coins are geared towards generating buzz for internet sensations but lack inherent value, making them highly volatile as investments.
Within hours of the launch, the market value of $Trump soared to nearly $5.5 billion, as reported by CoinMarketCap.com.
CIC Digital LLC and Fight Fight Fight LLC, a recent Delaware-formed company, hold an 80% stake in the tokens. The financial gains for Trump from this enterprise remain uncertain.
On Friday night, Trump promoted the meme coin on Truth Social, stating, "My NEW Official Trump Meme is HERE! It's time to celebrate everything we stand for: WINNING!"
The coin's website disclosed that 200 million digital tokens have been released, with plans to issue an additional 800 million over the next three years.
"This Trump Meme commemorates a leader who never backs down, regardless of the odds," the website affirmed.
While a disclaimer clarified that the coin does not represent an investment opportunity or security, critics accused Trump of profiting from his presidency.
Crypto venture capitalist Nick Tomaino criticized Trump's 80% ownership and the launch timing, suggesting that many investors could suffer losses.
Digital tokens like these are associated with speculation and market manipulation, leading to inevitable price fluctuations.
Cryptocurrency investors are optimistic that the Trump administration will pave the way for industry growth.
President Joe Biden's administration has raised apprehensions about fraud and money laundering in the crypto sector, prompting regulatory action against exchanges.
Despite previous reservations about cryptocurrency, Trump signaled a pro-crypto stance at a Bitcoin conference, envisioning America as the "crypto capital of the planet" upon his return to Washington.
Last year, Trump's sons, Eric and Donald Jr, also ventured into the crypto space.