Donald Trump startled the crypto industry this Friday night by launching his own meme coin on the Solana blockchain. Within hours, the cryptocurrency entered the top 100 digital assets by market capitalization.
Donald Trump will assume the presidency of the United States on January 20. Before assuming office, the Republican expressed his commitment to the crypto industry. He announced the establishment of a strategic Bitcoin reserve, the provision of support for US crypto firms, and the relaxation of mining regulations. This resulted in an increase in cryptocurrency prices in the months that followed his election victory. Nevertheless, only a few anticipated the existence of an official Trump meme coin. The president-elect published a certification of the “OFFICIAL TRUMP” (ticker: TRUMP) on his Truth Social platform and X (formerly Twitter).
The market was introduced to 200 million TRUMP tokens on the launch date, with the total supply expected to increase to 1 billion TRUMP. According to the meme coin’s website, the remaining tokens will be distributed to “a variety of organizations” over the course of three years. Organizations associated with Trump receive 80% of the tokens. CIC Digital LLC, a subsidiary of The Trump Organization, and Fight Fight Fight LLC jointly own 80% of the Trump Cards, according to the disclaimer.
This yields a fully diluted valuation of $15 billion USD at the current price of over $15 USD. The initial release will take place in three months, enabling Trump to promptly sell 3.6% of the total supply, which is currently valued at $360 million USD. Daily unlocking of the remaining 80% will occur over the course of three years. Even for Trump, the estimated net worth of $6.8 billion USD is substantial. The theoretical value of the 80% stake of the Trump meme coin based in Solana at the current price is $12 billion USD. This sum was evidently impossible to attain without substantial price reductions.
The official Trump meme coin was as significant for the industry as it was unexpected. Following his election victory, there were apprehensions regarding whether Trump would adhere to his pro-crypto stance. The industry now has a direct incentive for the prospective president to support it. Bitcoin is not the only cryptocurrency that could benefit from a prospective strategic reserve; alternative cryptocurrencies (“altcoins”) also have connections to Trump. In recent days, Solana, the blockchain behind the Trump meme coin, has experienced a 27% increase in value.
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