FILE – Then Republican presidential candidate former President Donald Trump speaks at the Bitcoin 2024 Conference on July 27, 2024, in Nashville, Tenn. Image: Mark Humphrey/AP
President Trump has launched a cryptocurrency coin that is drawing a sharp eye from experts as it yo-yos in value in its opening days of trading.
The official “meme coin,” known as $TRUMP, was launched on Friday for nearly $6.50 and rose to a high of $73 on Sunday. Hours after his inauguration, it had dropped below $40. It’s market cap on Monday was about $7.6 billion, according to CoinGecko.
First lady Melania Trump on Sunday also launched a meme coin, $MELANIA, at nearly $7. That coin also jumped in early trading, nudging above $13 at its height, before dropping below $5 as of Monday afternoon, according to CoinGecko.
“My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING!,” Trump wrote in a post on X, telling supporters to “Have Fun!”
Here is what you should know about the coins and cryptocurrency’s future under the Trump administration.
What is a meme coin?
A meme coin is a type of cryptocurrency that is inspired by a meme or another internet trend. One of the most well known is dogecoin, which was created as a joke and features a dog as its mascot. It became popular in 2013 and again in 2021.
Cryptocurrencies are unpredictable, volatile, and have been exploited by criminals to engage in fraud.
The cryptocurrency exchange FTX collapsed in 2022 and its founder, Sam Bankman-Fried was sentenced to 25 years in prison for his crimes.
Trump’s meme coin is marketed with an image of the president holding up his fist with the words, “FIGHT FIGHT FIGHT” – a phrase he has dubbed “a battle cry” after surviving an assassination attempt in July 2024. The first lady’s coin features a black and white photo of Melania smiling with her hands clasped in front of her face.
What is crypto’s future under the new Trump administration?
In the past, Trump has criticized cryptocurrency, calling it a “scam” and “potentially a disaster waiting to happen” during an interview with FOX Business in 2021. But he has since embraced the sector and on the campaign trail promised to make the U.S. “the crypto capital of the planet” by ending previous enforcement actions and bringing in friendly regulators.
The Trump family also has financial interests in World Liberty Financial, a crypto-related company.
There have been questions surrounding Trump’s meme coin and potential conflicts of interest given that Trump has promised to promote the crypto industry as president.
Trump has chosen Paul Atkins, former U.S. Securities and Exchange Commissioner and CEO of a consulting firm with crypto clients to lead the SEC. Atkins is also a supporter of cryptocurrencies and has expressed reservations about the SEC’s enforcement actions against the domestic crypto industry. David Sacks, a venture capitalist, has also been appointed by Trump as the country’s first crypto and artificial intelligence czar.
A GOP-controlled Congress could also help bolster cryptocurrency. Republican Arkansas Rep. French Hill, chair of the House Financial Services Committee, has pushed for measures to help develop crypto. There is skepticism about congressional warmth toward cryptocurrency, including from digital assets expert Carol Alexander, who called it “a step in the wrong direction.”
“We have to regulate the space,” Alexander, a professor at the University of Sussex, previously told NPR.
Preston Byrne, a cryptocurrency lawyer, said Trump’s involvement in cryptocurrency raises legal questions and could have a negative impact if it is not successful.
“Trump himself will also have to contend with the fact that his political fortunes will be tied to an asset that the market, and not the man, controls,” Byrne wrote in a post on Sunday. “If $TRUMP crashes it might affect his own political clout in DC.”
NPR’s Rafael Nam and Joe Hernandez contributed to this report.