Home Economy Trump, Melania launch meme coins: What are they?

Trump, Melania launch meme coins: What are they?

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(NewsNation) — President-elect Donald Trump’s newly created cryptocurrency token has soared to more than $10 billion in market value on his second Inauguration Day.

Trump announced the new $TRUMP meme coin Friday, writing on Truth Social: “It’s time to celebrate everything we stand for: WINNING! Join my very special Trump Community.”


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On Sunday, Melania Trump launched her own meme coin, $MELANIA, writing on X: “The Official Melania Meme is live! You can buy $MELANIA now.”

Here’s what to know about the bizarre world of meme coins and the ethical concerns around the president’s involvement:

What is a meme coin?

Meme coins are cryptocurrencies inspired by internet trends or jokes. They have no intrinsic value. They’re worth what someone else is willing to pay. In some cases, that can be a lot.

Dogecoin, the first meme coin, was meant as satire to mock Bitcoin, but its viral popularity has led to real gains for many. DOGE has a current market cap of roughly $55 billion.

Unlike stocks, which represent an ownership share in a company, meme coins’ value are based on hype, making them notoriously volatile and risky to invest in.

Are the Trump meme coins worth anything?

The Trump meme coins started selling for less than $10 each before surging above $70 on Sunday. By Monday morning, the price was below $50.

The Melania coin was trading for around on $8 Monday morning, down from $13 on Sunday evening.


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Those price swings underscore the volatility that makes meme coins so risky for buyers.

A community note was later added to Melania’s announcement on X, reading: “Buying this token is incredibly risky and will likely result in the loss of funds.”

On the meme coins’ official websites, potential buyers are warned that Trump and Melania’s crypto coins are “digital collectibles intended to function as an expression of support for and engagement with the values embodied by the symbol $TRUMP” and the symbol “MELANIA.”

The disclaimers go on to say the tokens “are not intended to be, or to be the subject of, an investment opportunity, investment contract, or security of any type.”

Instead, Trump’s meme coin website encourages buyers to, “Celebrate our win and have fun!”

Why did Trump launch a meme coin?

Trump is expected to be the most pro-crypto president in history, and his foray into the space suggests as much. The project is also likely to enrich him personally, raising ethics issues.

“The tokens released by Donald and Melania Trump appear to symbolize support for the digital currency sector. However, the introduction of these coins during the presidential inauguration raises concerns about potential conflicts of interest,” Grzegorz Drozdz, market analyst at Conotoxia, told CNBC.

Justin D’Anethan, an independent crypto analyst based in Hong Kong, told Reuters: “While it’s tempting to dismiss this as just another Trump spectacle, the launch of the official Trump token opens up a Pandora’s box of ethical and regulatory questions.”

The Trump meme coin was organized by CIC Digital, an affiliate of the Trump Organization. CIC Digital and another company collectively own 80% of the Trump meme coins and “will receive trading revenue derived from trading activities,” according to the official website.

The coin’s website said 200 million Trump meme coins are currently available, with plans to issue 1 billion over the next three years. 

Felix Salmon, chief financial correspondent at Axios, put it like this: “Trump has just delivered a masterclass in the ability of a president to turn power into wealth.”

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