President-elect Donald Trump has unveiled a cryptocurrency token, sparking controversy and skyrocketing its market value to over $5 billion overnight.
A Controversial Move Before Inauguration
Late Friday, Trump announced the launch of a new cryptocurrency memecoin, a digital token with no inherent value but traded on blockchain technology. His promotion on social media platforms caused the token’s market capitalization to exceed $5 billion, with over $11 billion in trading volume by Saturday afternoon, according to CoinGecko.
Trump’s Financial Stake in the Memecoin
The coin is managed by CIC Digital LLC, a Trump-owned company that controls 80% of the token’s supply. Currently, 200 million tokens are in circulation, with plans to expand to 1 billion over the next three years. At a token price of $27, the fully diluted value of the memecoin is estimated at $27 billion, positioning Trump’s company with a paper value exceeding $20 billion.
Ethics Concerns Loom Large
The timing and nature of the launch have raised ethical concerns among watchdog groups. Jordan Libowitz of Citizens for Responsibility and Ethics in Washington criticized the move as unprecedented and problematic, noting, “We now have a president-elect launching businesses while promising deregulation that could benefit those ventures.”
Trump’s financial involvement in the cryptocurrency sector has been a point of contention. He previously sold crypto trading cards, supported his sons’ digital asset firm, and spoke at a prominent Bitcoin conference during his campaign. His platform includes plans to deregulate digital assets and encourage government investment in Bitcoin.
Crypto Industry Backing
Trump’s announcement coincided with an unofficial inaugural ball hosted by crypto firms, where his incoming crypto and AI czar, venture capitalist David Sacks, declared, “The reign of terror against crypto is over.” The crypto industry has contributed at least $10 million to Trump’s inaugural fund.
Divided Reactions Within the Crypto Community
While some industry leaders welcomed the move, others expressed skepticism. Anthony Scaramucci, a crypto advocate and former Trump ally, called the initiative “bad for the industry” and likened it to “Idi Amin level corruption.”
As Trump prepares to take office, the launch of this memecoin exemplifies the blurred lines between his business ventures and political agenda, setting a controversial tone for his presidency.
COMMENTS