The launch of Donald Trump’s “meme coin” handed the president-elect the banknotes that would make him one of the world’s richest people on the eve of his inauguration.
Trump is sitting on a pile of digital tokens worth a theoretical $43 billion after investors and supporters flocked to the launch of his $Trump coin on Friday.
The token, announced by Trump on Friday, has soared in value since its launch, making it one of the world’s most valuable cryptocurrencies.
The 200 million tokens in circulation are worth a combined $10.7 billion (£8.6 billion), and the coin’s website says a total of 1 billion tokens will be issued over the next three years.
The remaining 800 million shares are still held by CIC Digital, which calls itself an affiliate of the Trump Organization, and its subsidiary Fight Fight Fight LLC.
At the coin’s current price of $53.65, the holdings are worth $42.9 billion.
It’s unclear how much Mr. Trump will personally benefit from, but this amount would put him at No. 33 on Bloomberg’s richest list.
Combined with his existing assets of $7.2 billion, he is worth $50.1 billion, making him 26th behind private equity king Stephen Schwartzman.
The chances of securing that wealth seem low. Meme coins are notorious for their volatile prices, and traders are looking to capitalize on the momentum by quickly buying and selling tokens to make quick profits.
Trumpcoin itself fell rapidly from Sunday’s high of $75.35 to about half that amount within hours, before recovering by Monday morning.
Meanwhile, Trump’s wife Melania unveiled her own meme coin on Sunday, and its value has since skyrocketed. The 192 million Melania coins in circulation are worth $2.2 billion.
The price of Bitcoin also hit an all-time high on Monday, reaching over $109,000. Trump has dubbed himself the “crypto president” and received significant support from the industry during his campaign.
While the launch of Trumpcoin promised potential riches for the new president, it was criticized by many crypto supporters.
Cryptocurrency investor Balaji Srinivasan said memecoins are a “zero-sum game,” while investor Eric Voorhees called it “stupid and embarrassing.” Anthony Scaramucci, a former Trump aide, called this “Idi Amin-level corruption.”
Cryptocurrency proponents believe Bitcoin and other coins can reshape the financial system, but memecoin creators’ ambitions are not that high.
These are typically created to increase the popularity of a trend or allow fans to express support for an influencer, and have little inherent use. Their value often fluctuates wildly, and investors speculate that they can profit from what has been likened to gambling.
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