The $TRUMP token, a cryptocurrency linked to 47th U.S. President Donald Trump, experienced dramatic price movements to $74.59 before retreating to $33.88 on Monday shortly after its launch.
The token’s market value briefly exceeded $10 billion before pulling back, as investors and critics jumped on it.
Launched on Friday evening, the token surged from under $10 on Saturday morning as it rode on the momentum of Trump’s inauguration.
The cryptocurrency, branded as a “memecoin,” was created on the Solana blockchain and has been described as a symbolic representation of Trump’s ideals, rather than an investment or security.
Eighty percent of $TRUMP tokens are controlled by CIC Digital, an affiliate of Trump’s business, and another entity called Fight, Fight, Fight.
According to its website, the token aims to promote “support for, and engagement with, the ideals and beliefs embodied by the symbol ‘$TRUMP.‘”
Bitcoin, the world’s largest cryptocurrency, hit an all-time high of $109,071 on inauguration day before retreating to $101,867.40.
Solana, the blockchain powering $TRUMP, also rose to a record high of $294.33 over the weekend.
Grzegorz Drozdz, market analyst at Conotoxia Ltd., said “The cryptocurrency market gained additional popularity in recent hours due to the launch of the TRUMP and MELANIA cryptocurrencies just before the inauguration.”
World Liberty Financial, another Trump-linked project, announced it had completed an initial token sale, raising $300 million.
“While it’s tempting to dismiss this as just another Trump spectacle, the launch of the official Trump token opens up a Pandora’s box of ethical and regulatory questions,” said Justin D’Anethan, an independent crypto analyst based in Hong Kong.