What is $TRUMP, the memecoin inspired by Donald Trump and why is it generating so much controversy?

The world of cryptocurrencies is booming with innovation, surprises, and, of course, unexpected trends. One of the latest is TRUMP, a memecoin that has captured the attention of investors, cryptocurrency enthusiasts, and curious onlookers alike. Inspired by the new President of the United States, Donald Trump, this cryptocurrency has sparked debates not only in financial markets but also within digital communities and across social media platforms.

In this blog piece you’ll find essential information to understand this memecoin, from why it was born, to the factors that could affect its value.

How was $TRUMP created?

The meme coin of the 47th President of the United States was announced to the public through a post on the social media platform X by Donald Trump himself on January 18, 2025.

My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING! Join my very special Trump Community. GET YOUR $TRUMP NOW. Go to https://t.co/GX3ZxT5xyq — Have Fun! pic.twitter.com/flIKYyfBrC

— Donald J. Trump (@realDonaldTrump) January 18, 2025

In the post, Trump mentioned that this “memecoin” would be a way to celebrate “everything they stand for” and his victory in the recent elections, as well as to belong to his crypto community.

Additionally, on its official website, you can find more information about the purpose of the first official memecoin launched by a U.S. president.

“Trump Memes are intended to function as an expression of support for, and engagement with, the ideals and beliefs embodied by the symbol “$TRUMP” and the associated artwork, and are not intended to be, or to be the subject of, an investment opportunity, investment contract, or security of any type.… CIC Digital LLC, a subsidiary of The Trump Organization, and Fight Fight Fight LLC collectively own 80% of the Trump Cards, subject to a 3-year unlock schedule.”

It’s clear that the team behind the cryptocurrency emphasizes that it is not intended to be an investment vehicle but solely a way to support its ideals.

It’s worth noting that this is not Donald Trump’s first foray into the world of cryptocurrencies. Over the past four years, he has launched several NFT collections to finance his campaign, build community, and raise funds for various legal processes he has faced—and continues to face.

What is the technology behind TRUMP memecoin?

The $TRUMP memecoin is built on the Solana blockchain network, known for its low fees and fast transaction times, as well as its ease of launching Web3, DeFi, and NFT projects.

It is worth mentioning that the hype around $TRUMP during its first few days on the public market caused Solana’s (SOL) price to reach a new all-time high.

The $TRUMP case could attract new users to the crypto ecosystem, benefiting the industry as a whole. However, a significant price drop could drive away those users who entered the crypto world solely in search of profits or out of support for Donald Trump.

What community supports Trump’s memecoin?

As mentioned, this is not Donald Trump’s first venture into cryptocurrencies. Previously, he launched five different NFT collections, earning commissions in Ethereum and Solana.

These Non-Fungible Token (NFT) projects were mostly released by CIC Digital LLC, a company affiliated with the Trump Organization that launched Trump’s NFTs in 2023.

Donald Trump’s role in the launch

Donald Trump, as the central figure of this project, has promoted the cryptocurrency by aligning it with his political message. His influence has been crucial in generating interest and support among his followers.

Additionally, Trump has openly published and sponsored his NFT collections, even offering clothing items as gifts to collectors who spent more than €20,000 on his various pieces for sale.

Initial controversies surrounding Trump’s cryptocurrency

From the very beginning, the launch has been surrounded by controversies. The direct relationship between a U.S. president and a new financial asset has raised concerns about market manipulation and conflicts of interest.

Experts have voiced concerns about how political influence could affect the price and perception of the cryptocurrency, leading to a complex landscape of conflicting interests.

Moreover, according to the roadmap available on the official website, 80% of all tokens are owned by Trump and his associated teams (with a lockup period of three years before liquidation). This leaves only 20% of the tokens accessible to the public.

This high degree of market centralization has sparked criticism within the crypto community.

$TRUMP made memecoins worse than VC-backed coins by a wide margin.

The Donald Trump Revocable Trust owns 100% of CIC Digital, which has been allocated 80% of the supply of the new memecoin launched by @realDonaldTrump.

The same company was also behind Donald Trump NFTs. pic.twitter.com/RI2Y2wgy8W

— hitesh.eth (@hmalviya9) January 18, 2025

What is the market capitalization of $TRUMP memecoin?

In its first 48 hours of existence, the $TRUMP memecoin achieved a market capitalization of approximately $14 billion. Its initial price of $7 was an attractive starting point that drew the attention of investors and speculators. This impressive figure highlights the cryptocurrency’s potential to attract immediate funding.

However, after Donald Trump failed to mention Bitcoin (BTC), blockchain technology, or his newly launched memecoin during his inaugural address or the signing of his first executive orders, the cryptocurrency’s price plummeted from its all-time high of $74 to $36.

As of today, the market capitalization of $TRUMP is approximately $7.2 billion.

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