A newly launched memecoin tied to Donald Trump has taken the cryptocurrency market by storm, witnessing a dramatic price spike from just a few cents to an astonishing $14 in the short span of six hours.
This rapid rise comes amid confusion regarding the token’s official backing and rising concerns over potential hacks targeting Trump’s verified accounts on platforms like X and Truth Social.
Market Reaction and Trading Activity
The announcement of this memecoin came early Saturday in Asia, perfectly timing with the impending inauguration of Trump on January 20.
Traders across the globe—from the U.S. to Asia—have been buzzing with speculation about the coin’s legitimacy and whether it genuinely carries Trump’s endorsement.
As Saturday morning unfolded in Europe, CoinDesk was still gathering information to authenticate the token.
Despite skepticism from some corners of the cryptocurrency community, trading volumes soared to a remarkable $3 billion soon after the launch, pushing the market cap to an impressive $2 billion.
Early investors have already realized over $70 million in unrealized gains, while smaller traders have pocketed profits as high as $1 million.
Trump’s Engagement and Community Invitation
This momentous event marks the inaugural instance of a sitting president backing a memecoin, further enhancing Trump’s reputation in the crypto realm.
His history includes ventures like the release of several NFTs and the establishment of a decentralized finance platform called World Liberty Financial.
In a post on his X account, Trump expressed his excitement for the new memecoin, inviting his supporters to join what he referred to as a unique community.
He also encouraged followers to purchase the token via a designated website.
The site does clarify, however, that this meme token isn’t positioned as an investment opportunity; instead, it aims to symbolize support for the principles associated with the $TRUMP brand.
Past Performance of Trump-Centric Memecoins
It’s worth noting that previous Trump-centric memecoins struggled in the marketplace, with some experiencing declines of up to 50% as trading dynamics shifted.
Source: Coindesk
