Zinger Key Points
- Crypto industry shows support with a $10 million spend on inauguration festivities amid regulatory tensions.
- Watchdogs raise ethical concerns over a president-elect profiting from a speculative digital asset.
- Get Wall Street's Hottest Chart Every Morning
President-elect Donald Trump‘s Saturday launch of the meme coin TRUMP TRUMP/USD has caused a stir in both the crypto industry and among government watchdogs.
What Happened: The meme coin’s market value soared to $5.6 billion within just 24 hours of the launch, suggesting a potential financial boon for entities linked to Trump.
The token, which provides direct financial advantages to the president-elect's family, has drawn immediate backlash from government watchdogs. They perceive it as a violation of ethical standards and a way for the president-elect to monetize his international prestige.
The TRUMP meme coin, unlike other digital assets, is not tied to any underlying business. This makes it a highly speculative investment for investors and potentially extremely lucrative for its creators.
As per the Benzinga Pro data, the meme coin’s market value reached $14.2 billion early Sunday, nearly tripling from $4.9 billion just 12 hours prior.
The meme coins started selling for $10 each before soaring to as high as about $70 as of Sunday morning.
At the time of writing TRUMP was trading at $56.02, up by almost 95% in the last 24 hours.
According to a report by Bloomberg, CIC Digital LLC, an affiliate of the Trump Organization, and a related entity, Fight Fight Fight LLC, own an 80% share of the digital asset. These holdings will be gradually unlocked over a span of three years.
Also Read: Crypto Firms Donate Millions to Trump Inaugural Fund, Host Unofficial Ball Featuring Snoop Dogg
"$Trump is currently the hottest digital meme on earth," Eric Trump wrote on X.
The official meme coin website says that their holdings will unlock over a three-year period, with 200 million tokens available immediately and 1 billion in circulation over the next three years.
Despite the controversy surrounding its launch, the crypto industry, which felt unjustly targeted under President Joe Biden administration, has welcomed the new meme coin. Crypto companies reportedly spent $10 million on Trump's inauguration, indicating their support for the incoming administration.
Why It Matters: The launch of the Trump meme coin is a significant event in the crypto industry. It represents a shift in the relationship between politics and cryptocurrency, with a high-profile political figure directly benefiting from a digital asset.
This move could potentially influence future political and financial strategies, as well as regulatory approaches to cryptocurrency.
However, the controversy surrounding the launch also highlights the ethical concerns and potential conflicts of interest that can arise when political figures engage in such ventures.
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