On January 17, 2025, US President-elect Donald Trump launched his own cryptocurrency, called $TRUMP. Billed as a "meme coin," its market value quickly reached billions of dollars, with much of that amount held by Trump and his companies.
Pros of $TRUMP coin:
1. Presidential Support: Donald Trump’s direct endorsement lends legitimacy and attracts investors who trust his leadership.
2. Rapid Appreciation: Since launch, the coin has experienced significant appreciation, indicating potential for financial returns for early investors.
3. Integration with Crypto Policies: The initiative aligns with Trump’s promises to adopt a lighter regulatory approach to cryptocurrencies, suggesting a favorable environment for the growth of the crypto market in the US.
Cons of $TRUMP coin:
1. Concentration of Ownership: About 80% of the tokens are under the control of Trump-affiliated entities such as CIC Digital LLC and Fight Fight Fight LLC, which may raise concerns about centralization and market manipulation.
2. Speculative Nature: As a "meme coin", $TRUMP lacks intrinsic economic or transactional utility and is often considered a purely speculative asset.
3. Ethical and Influence Risks: Critics point out that the currency may be susceptible to external influences and raise ethical questions, especially due to the direct involvement of a prominent political figure.
In short, while the $TRUMP cryptocurrency presents opportunities for appreciation and has the backing of an influential political figure, potential investors should be aware of the risks associated with centralized ownership, the speculative nature of the asset, and potential ethical implications.