Donald Trump’s new $TRUMP meme coin grips crypto market: What is it? Why is it surging?— EXPLAINED in 5 Points #CriptoNews

Donald Trump’s new $TRUMP meme coin gripped the cryptocurrency market with its stellar $14.5 billion debut on Saturday, January 18, just days before Trump’s inauguration to take oath as the 47th US President. The meme coin is his latest merchandise push in recent years, adding to a line of perfumes and colognes and “Trump Watches” celebrating his Presidential election win.

The coin was launched on Saturday morning. Taking to social media platform ‘X’ (formerly Twitter), Trump introduced the coin as his ‘official Trump meme.’ He wrote: “My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING! Join my very special Trump Community. GET YOUR $TRUMP NOW. Go to http://gettrumpmemes.com — Have Fun!” (sic)”

Also Read: $TRUMP meme coin rakes in billions ahead of Donald Trump’s inauguration, spikes over 300% within hours after launch

Donald Trump’s new $TRUMP meme coin: Here are top 5 things to know:

1.What is the new $TRUMP meme coin?

Trump Memes are fungible crypto assets created and tracked on the Solana blockchain. According to CoinMarketCap, the newly launched $TRUMP MEME is a unique meme coin that combines Trump’s unmistakable persona with the ever-evolving world of viral internet humour. Cipher, ChainGPT, and D Community are some of the coins similar to the $TRUMP meme coin.

It is the only official Trump Meme by US President-elect Donald J. Trump. “In a world where memes drive culture, the $TRUMP meme coin stands out by transforming these cultural moments into a decentralized cryptocurrency that’s as bold and entertaining as its namesake,” said CoinMarketCap on its site.

2.Why did Donald Trump launch the $TRUMP meme coin?

Donald Trump announced the launch of his meme coin, $TRUMP, in a Truth Social post late Friday. He said the cryptocurrency is about celebrating “WINNING” the presidential election and his upcoming inauguration. The meme coin is inspired by Trump’s iconic “Fight, Fight, Fight” slogan, which he coined after surviving an assassination attempt at a campaign rally.

Also Read: $TRUMP meme coin Mcap crosses staggering $6 billion; Here’s how it compares with gains of peer cryptos

Trump officially introduced the $TRUMP token through his Truth Social platform. The announcement quickly gained traction, with Trump urging investors to grab tokens via the official website before the 48-hour claiming window closed. “Now, you can get your piece of history. This Trump Meme celebrates a leader who doesn’t back down, no matter the odds. Join the Trump Community – we’re all about fighting for what matters,” the site states.

3.Why is the $TRUMP meme coin surging? What’s behind the rally?

Donald Trump has been a champion of the crypto industry. Trump’s election campaign was backed by several billionaires with ties to the cryptocurrency industry. He claimed he wanted the US to become the “crypto capital of the planet.” His victory sent Bitcoin to several new record highs, eclipsing $100,000 within a month of Election Day.

According to CoinGecko, roughly $1.8 trillion was added to the global crypto market’s aggregate value in 2024, including $1 trillion since US Election Results Day. $TRUMP meme coin’s trading volumes crossed $1 billion, and the coin’s value surged over 300 per cent within minutes. With the intense rally, the coin’s price reached $7.1, up from an initial $0.18. According to CoinMarketCap, the meme coin was trading at $29, reflecting a 299 per cent increase from its debut price.

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4.What is the current allocation of $TRUMP meme coin?

Solana, a cryptocurrency and blockchain platform, developed the $TRUMP meme coin. At launch, it limited the supply of $TRUMP to 200 million coins before expanding the overall supply to one billion over the next three years.

The remaining 80 per cent of tokens that have yet to be publicly released are owned by the Trump Organization affiliate CIC Digital LLC and Fight Fight Fight LLC, a company formed in Delaware on January 7, according to state filings, and both companies will receive an undisclosed amount of revenue derived from trading activity.

The token’s website includes a disclaimer noting $TRUMP is “not intended to be, or the subject of” an investment opportunity nor a security of any type, and is “not political and has nothing to do with” any political campaign, political office or government agency.

5.What is the near-term outlook for the $TRUMP meme coin?

Trump, who had repeatedly championed cryptocurrencies during his first term, has positioned himself as a “crypto president.” Supporters see the $TRUMP meme token as a continuation of his pro-crypto stance, hinting that his upcoming term in the White House as the 47th US President could bring further support for digital assets.

However, meme coins such as the Dogecoin, Shiba Inu, and now the presidential Trump Coin have flourished precisely because they are not securities. They position themselves as purely speculative assets without a promise of profit sharing or underlying utility. While the initial response might seem attractive, meme coins are volatile and often follow unpredictable trajectories. The meme coin token’s success could depend on fundamental factors and sustaining investors’ enthusiasm.