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US President-elect Donald Trump launched his own cryptocurrency, whose market capitalization quickly skyrocketed to several billion dollars.
His release of the meme coin, $Trump, comes as he prepares to take office on Monday as the 47th president of the United States.
The company was coordinated by CIC Digital LLC, an affiliate of the Trump Organization, which previously sold Trump-branded shoes and fragrances.
Meme coins are used to generate popularity for a trend or viral movement on the Internet, but they lack intrinsic value and are extremely volatile investments.
On Saturday afternoon, hours after its launch, Trump’s market capitalization reached almost $5.5bn (£4.5bn), according to CoinMarketCap.com.
CIC Digital LLC and Fight Fight Fight LLC, a company formed in Delaware earlier this month, own 80% of the tokens. It’s unclear how much money Trump could make from the company.
“My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING!” Trump wrote on his social media platform Truth Social when he announced the meme coin on Friday night.
Some 200 million digital tokens have been issued and another 800 million will be launched over the next three years, according to the currency’s website.
“This Trump meme celebrates a leader who doesn’t back down, no matter the odds,” the website said.
It included a disclaimer noting that the currency “is not intended to be or be the subject of” an investment opportunity or security and “is not political and has nothing to do with” any political campaign, political office or government agency.
Critics accused Trump of profiting from the presidency.
“Trump owning 80 percent and scheduling the launch hours before the inauguration is predatory and many will likely be hurt by it,” Nick Tomaino, a crypto venture capitalist, said in a social media post.
These digital tokens are known for speculators who use hype to increase value before selling them at the top of the market, leaving newcomers to count their losses as the price plummets.
Cryptocurrency investors hope the Trump administration will boost the industry.
President Joe Biden’s regulators cited concerns about fraud and money laundering as they cracked down on crypto companies by suing exchanges.
Trump was previously nervous about cryptocurrencies, but at a Bitcoin conference in Nashville last year he said the United States would be “the crypto capital of the planet” once he returned to Washington.
His sons Erik and Donald Jr announced their own crypto company last year.
