On January 17, 2025, former President Donald Trump launched the $TRUMP meme coin, a cryptocurrency designed to capitalize on his brand and appeal to his supporters. The coin's initial offering (ICO) was announced on Trump's social media platforms, including X and Truth Social, during a "Crypto Ball" event coinciding with his inauguration. The ICO released 200 million tokens, each priced at $0.01, totaling a market capitalization of $2 billion.
The launch of $TRUMP was met with immediate market enthusiasm, with the coin's value soaring over 300% within a day, reaching a peak market capitalization of approximately $27 billion. This surge positioned $TRUMP among the top 20 cryptocurrencies by market value.
However, the rapid ascent of $TRUMP raised ethical concerns and allegations of a "pump and dump" scheme. A forensic analysis revealed that approximately 813,000 wallets collectively lost around $2 billion trading the coin, while entities affiliated with Trump profited about $100 million from trading fees. This disparity led to criticism from ethics experts and calls for investigations into potential conflicts of interest.
In response to the volatility and criticism, the value of $TRUMP has experienced significant fluctuations. By February 9, 2025, the coin's price had declined to $16, reflecting a substantial decrease from its peak.
The $TRUMP coin's launch underscores the intersection of politics and cryptocurrency, highlighting the potential for political figures to influence digital asset markets. It also emphasizes the need for regulatory oversight to protect investors and maintain market integrity.
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