In a notable cryptocurrency launch, more than 7% of users from a sample of CoinLedger traded Donald Trump’s meme coin, Official Trump, just days before his presidential inauguration, Axios reports. Released on January 18, the token achieved a high price of $73.43 on January 19.
Why that’s huge:
- The token saw unmatched engagement, with 7.47% of users trading it, far outpacing competitors like Melania’s and Iggy Azalea’s tokens.
- Its price surge to $73.43 and stabilization around $40 showed strong speculative interest, generating $58 million in trading fees.
- Trump’s control of 80% of the supply raised concerns about price manipulation and national security risks linked to foreign influence.
- The controversy highlighted regulatory gaps and financial exploitation risks in celebrity-backed crypto projects.
- The launch brought crypto into mainstream conversations, driving adoption but also damaging its reputation with ethical and geopolitical concerns.
Official Trump token rockets to $73
According to CoinLedger’s research, 7.47% of 1,391 sampled users had traded the Official Trump token by January 19, while only 1.9% traded the Melania Meme token on its launch day. In contrast, Australian pop star Iggy Azalea’s MOTHER token saw just 0.7% user interaction in the same timeframe, indicating that Trump’s offering garnered 11 times more engagement than that of a previously popular meme coin.
CEO David Kemmerer noted that the market’s response reflects investors seeing potential for profit. Following its initial spike, the Official Trump token has settled around $40 since the inauguration.
Winners and losers of $TRUMP coin
Controversy among crypto insiders
Trump’s move to enter the cryptocurrency space surprised many, particularly during the Crypto Ball event held shortly before his inauguration. The TRUMP currency’s launch brought a surge of interest in cryptocurrency but also sparked concerns among crypto insiders. They expressed that Trump’s control of at least 80% of the token’s supply raised ethical issues, allowing him to exert considerable influence over its market price.
Angela Walch, a crypto researcher, commented, “The crypto sector put someone in power whose first act is to emphasize and take advantage of the opportunity for grift within crypto,” describing the situation as embarrassing. Critics argue that the tokens open avenues for possible bribery and conflicts of interest, indicating they could be exploited for financial gains from foreign entities.
Legal experts caution that the potential for financial influence may threaten national security, with concerns that foreign agents could leverage significant holdings in TRUMP to sway political decisions. Puja Ohlhaver of Harvard’s Allen Lab remarked that the arrangement risks prioritizing Trump’s interests over those of the American public.
During his inauguration preparations, Trump launched the Official Trump token via CIC Digital LLC, an affiliate of his organization, which took the market by surprise. Transaction delays occurred on blockchain and exchange platforms as demand surged, and within a day, the controlling team was reported to hold tokens worth approximately $51 billion on paper.
Shortly after TRUMP’s launch, Melania Trump introduced her own token, MELANIA, which subsequently diminished the market cap of the Official Trump token. The price of TRUMP experienced a swift drop from over $70 to around $45 within an hour of MELANIA’s release. Analysts indicated that Trump’s team appeared to have benefited significantly from trading fees related to these tokens, with estimates suggesting they accrued $58 million shortly after launch.
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Featured image credit: Kerem Gülen/Ideogram
