In a stunning turn of events, the Trump family's new cryptocurrency token, $Trump, has become one of the most valuable digital currencies in the world, reaching a $72 billion market valuation just days after its launch.
The token was announced by President-elect Donald J. Trump on Friday night, ahead of his inauguration, as part of a growing wave of interest in cryptocurrency, LatinTimes said. However, the coin's meteoric rise has sparked concerns about conflicts of interest and its potential impact on the crypto market.
Trump Family's $Trump Token Surges to $13 Billion in Just Two Days
Launched through CIC Digital LLC, a company owned by the Trump family, $Trump's success has raised eyebrows due to its rapid increase in value. Within just two days, the token's total trading value surged to nearly $13 billion, with over $29 billion worth of trades conducted.
This sudden popularity places $Trump among the top 20 cryptocurrencies globally, based on its market value.
According to NY Times, the coin's price was initially set at $64 per token, and Trump affiliates hold a further 800 million tokens, which could theoretically bring the family an additional $51 billion.
Despite the surge in value, the nature of $Trump has led to some skepticism. As a "meme coin," the token is tied to internet culture, similar to other cryptocurrencies such as Dogecoin.
These types of tokens are often prone to volatility, which raises questions about the token's long-term value.
A major concern is that the coin's value may dramatically drop once its holders begin to sell off large quantities of tokens, a scenario that has unfolded with other meme coins in the past.
Trump's Support for Crypto Raises Questions About Conflicts of Interest and Profits
The Trump family's venture into the crypto market coincides with broader political moves that appear to favor the cryptocurrency industry. President-elect Trump has shown support for digital currencies, even suggesting during his campaign that he would help make the US the "crypto capital of the planet."
Additionally, his administration is expected to take a more relaxed stance on crypto regulation, which could further benefit the industry.
Critics have raised ethical questions about the family's involvement in the cryptocurrency market, especially considering Trump's potential to profit from future regulatory changes. This has led to calls for increased scrutiny, with some accusing the Trump family of using their political influence to profit from the venture.
Ethical watchdogs have expressed concerns about transparency and the potential conflicts of interest this launch creates, especially since the Trump family holds a significant portion of the token's supply.
