Trump launches meme coin, $TRump days before return to White House

US President Donald Trump has launched his own cryptocurrency, which quickly rose in market value to several billion dollars.

His release of the meme coin, $Trump, comes as he prepares to take office on Monday as the 47th president of the United States.

The venture was coordinated by CIC Digital LLC — a subsidiary of the Trump Organization — which has previously sold Trump-branded shoes and fragrances.

Meme coins are used to build popularity for a viral internet trend or movement, but they lack intrinsic value and are extremely volatile investments.

By Saturday afternoon, hours after the launch, the market capitalization of $Trump reached nearly $5.5 billion. (£4.5bn), according to CoinMarketCap.com.

CIC Digital LLC and Fight Fight Fight LLC, a company formed in Delaware earlier this month, own 80% of the tokens. It is unclear how much money Trump stands to make from the venture.

“My NEW official Trump meme is HERE! It’s time to celebrate everything we stand for: WINNING!” Trump wrote on his social media platform Truth Social when he announced the meme coin on Friday night.

About 200 million of the digital tokens have been issued, and another 800 million will be released in the next three years, the coin’s website said.

“This Trump Meme celebrates a leader who doesn’t back down, no matter the odds,” the website said.

It contained a disclaimer noting that the coin “is not intended to be or the subject of” an investment opportunity or security and “was not political and has nothing to do with” any political campaign, political office or government agency.

Critics accused Trump of cashing in on the presidency.

“Trump owning 80 percent and timing the launch hours before the inauguration is predatory and many will likely be hurt by it,” Nick Tomaino, a crypto venture capitalist, said in a social media post.

Such digital tokens are notorious for speculators who use hype to pump up the value before selling at the top of the market, leaving stragglers to count their losses when the price crashes.

Cryptocurrency investors hope the Trump administration will boost the industry.

President Joe Biden’s regulators cited fraud and money laundering concerns when cracking down on crypto companies by suing exchanges.

Trump was previously tight-lipped about cryptocurrency, but at a Bitcoin conference in Nashville last year, he said America would be the “crypto capital of the planet” when he returned to Washington.

His sons Erik and Donald Jr announced their own crypto venture last year.