President Donald Trump has launched his latest foray into crypto-assets with the $TRUMP token, a memecoin built on the Solana blockchain. Announced on January 18, the token was promoted through X (formerly Twitter) and Truth Social as a digital asset commemorating Trump’s legacy. Shortly thereafter, former First Lady Melania Trump launched her own memecoin, signaling a broader embrace of digital assets within the Trump brand.
Tokenomics and Market Performance
The $TRUMP token debuted with a total supply of 1 billion tokens. Of this, 20% (200 million tokens) were made available for public purchase through an official website (aptly named gettrumpmemes.com), with payments accepted in both fiat and cryptocurrency. The remaining 80% (800 million tokens) were retained by CIC Digital LLC, an entity linked to The Trump Organization. Curiously, these tokens are the subject to a structured lock-up period, gradually unlocking over the next two years.
The token launch garnered significant market attention. Initially priced at approximately USD$7-10 per token, its value surged to a peak of over USD ~$70 before experiencing a sharp correction. By 21 January, it had somewhat stabilized around the USD $40 mark - a notable decline from its peak but still maintaining substantial speculative interest. At the time of writing, the token price sits at around USD $25. At its highest valuation, the token’s market capitalisation approached USD$13 billion, underscoring the speculative enthusiasm surrounding an asset that, according to the issuers, has no stated utility or investment purpose:
Trump Memes are intended to function as an expression of support for, and engagement with, the ideals and beliefs embodied by the symbol "$TRUMP" and the associated artwork, and are not intended to be, or to be the subject of, an investment opportunity, investment contract, or security of any type. GetTrumpMemes.com is not political and has nothing to do with any political campaign or any political office or governmental agency.
The launch has of course not been without controversy and suspicion. Onchain analytics firm Bubblemaps investigated a digital wallet funded and geared to purchase a large amount of $TRUMP just before its launch.
Preetam Rao, CEO of QuillAudits (a Web3 security analytics company), expressed concerns regarding the tokenomics of the token to CoinTelegraph. In particular, Rao noted that the top 10 holders of the token owned approximately ~90% of the total supply and expressed concerns over insider trades.
Regulatory Considerations and Market Concerns
Given the historical volatility and regulatory scrutiny associated with memecoins, $TRUMP has attracted attention from investors and financial regulators alike. Memecoins have frequently been linked to market manipulation and speculative trading patterns (e.g., the classic "pump and dump" strategy), leading to concerns about their long-term viability and regulatory implications.
While memecoins have often sought to skirt securities laws by ostensibly offering no utility or returns to investors, they are not immune from securities laws. Securities laws can be engaged depending on promises and other representations by the token issuers. In any event, general consumer law protections (e.g. restrictions on misleading and deceptive conduct) will apply.
Given President Trump’s office as President, the $TRUMP token launch has also raised ethics concerns.
Unlike certain high-profile cryptocurrency scams, $TRUMP allows for open trading and has been listed on major exchanges, lending it a degree of legitimacy. However, the significant insider allocation has raised questions regarding potential market manipulation risks. It will be interesting to see if (and how) regulators approach the $TRUMP token, given its association with arguably the most powerful and high-profile political figure on the planet - the POTUS.
The Role of Memecoins in the Broader Crypto Market
Memecoins occupy a unique position in the crypto landscape, blending internet culture with financial speculation. Unlike Bitcoin or Ethereum, which offer established use cases or product utility, memecoins largely derive their value from community engagement and market sentiment.
Dogecoin (DOGE) pioneered the memecoin trend in 2013, initially as a satirical asset before gaining mainstream recognition. Successive memecoins, including Shiba Inu (SHIB), Pepe (PEPE), and Floki Inu (FLOKI), have demonstrated the sector’s ability to generate substantial market interest (for example, the combined market capitalisation of SHIB, PEPE and FLOKI for example is over USD $50 billion), often driven by social media trends and influencer endorsements.
Political-Themed Crypto and Its Future Prospects
The launch of $TRUMP represents a new level of political branding and digital asset speculation. Unlike prior politically themed tokens, which were often short-lived novelty projects, this initiative appears to have a more structured approach. However, its long-term sustainability remains uncertain, particularly in light of potential regulatory scrutiny and the challenges of maintaining market confidence.
What does this all mean for the future? Well, if $TRUMP proves anything, it is that memecoins are not going anywhere. Their cultural significance has evolved beyond joke status; they now serve as symbols, political statements, and speculative assets rolled into one. Given the token’s early market performance, it wouldn’t be surprising to see other politicians hop on the bandwagon.
The trajectory of $TRUMP will likely depend on broader market conditions, regulatory developments, and continued investor interest. Whether this token becomes a mainstay or a cautionary tale in the annals of crypto history, one thing is certain: we live in unprecedented times.
Written by Steven Pettigrove and Luke Higgins with Michael Bacina