President-elect Donald Trump unveiled a new cryptocurrency Friday night that has generated billions in market value over the weekend, raising both excitement and ethical concerns just days before his inauguration.
Why it matters: Forbes reports that Trump has launched the $TRUMP meme coin, which his companies control 80% of, fundamentally changes the relationship between the presidency and cryptocurrency markets while potentially adding tens of billions to his net worth days before taking office.
Market Impact: BBC reports the token’s meteoric rise reflects intense speculation around Trump’s promised crypto-friendly policies. Within 48 hours of launch, $TRUMP achieved remarkable milestones:
- Market cap exceeded $13 billion
- Trading volume topped $28 billion
- Price surged above $60 per token
- Became second-largest meme coin
Corporate Structure: The token’s unusual ownership structure raises concerns about conflicts of interest. Two Trump-affiliated companies maintain tight control:
- CIC Digital LLC owns majority stake
- Fight Fight Fight LLC shares control
- 200 million tokens initially released
- 800 million more planned over 3 years
Policy Implications: The launch comes as Trump promises sweeping changes to cryptocurrency regulation:
- Executive orders planned for day one
- Bitcoin strategic reserve proposed
- Crypto advisory council planned
- Industry-friendly regulations promised
Looking Forward: While Trump’s team maintains the token has no connection to his presidency or campaign, ethics watchdogs warn the unprecedented merger of presidential power and cryptocurrency speculation could enable concerning conflicts of interest.
