### Trump’s New Cryptocurrency $Trump Launches – Everything You Need to Know
Former U.S. President Donald Trump has made a full-fledged entry into the cryptocurrency industry, officially launching a cryptocurrency named $Trump. Immediately after its launch, it garnered significant attention in the market, surpassing a market capitalization of $5.5 billion (approximately ₩7.4 trillion) within hours. The project is being conducted through CIC Digital LLC, a company under the Trump organization, and is attracting public attention, similar to existing Trump-branded products.
However, various controversies have arisen surrounding Trump’s entry into cryptocurrency. Below, we analyze detailed information about the $Trump coin and address the controversies.
Key Features of $Trump Coin
1. Coin Structure
- Issuance: Initially, 200 million digital tokens were issued, and an additional 8 million tokens are scheduled to be released into the market over the next 3 years.
- Ownership Structure: CIC Digital LLC and Fight Fight Fight LLC own 80% of the total tokens.
2. Purpose
- Trump himself described the
$Trumpcoin as “a symbol that celebrates everything we stand for.” - The launch website emphasizes that the $Trump coin is not political and is a meme coin, not an investment.
3. Price Volatility
$Trumpis highly speculative due to its nature as a meme coin.- Although its market capitalization rose astronomically on its first day of issuance, there is a high possibility of significant volatility afterward.
Criticisms and Concerns
1. Concerns of Economic Exploitation
- With organizations related to Trump owning the majority of the tokens, there are concerns that individual investors will suffer from ‘Pump and Dump’ tactics.
- Nick Tomaino (a crypto venture capitalist) pointed out that “the timing of the $Trump launch just before the inauguration means that small investors are likely to suffer losses.”
2. Political Controversy
- There is criticism that Trump, as a former president, is using his recognition to pursue financial gains through cryptocurrency.
- Some critics argue that “the cryptocurrency launch commercially exploits the presidency.”
3. Potential Legal Issues
- If cryptocurrency is considered an investment product, it could be subject to investigation by the U.S. Securities and Exchange Commission (SEC).
- In particular, while
$Trumpexplicitly claims not to be an investment product, it remains unclear what legal consequences this will have.
- In particular, while
Impact on the Cryptocurrency Market
1. Market Upsurge Expectations
- Some cryptocurrency experts are anticipating a revitalization of the market due to Trump’s cryptocurrency launch.
- Under the previous Biden administration, the cryptocurrency industry faced difficulties due to regulatory tightening.
- Trump has stated that he will once again make the U.S. a “hub of cryptocurrency”.
2. Rise of Meme Coins
- Drawing on the success cases of meme coins like Dogecoin, there is a possibility that the emergence of
$Trumpcould drive a market-wide meme coin boom.
Summary of Key Information
| Item | Content |
|---|---|
| Issuance | Initial 200 million, total 1 billion (additional issuance within 3 years) |
| Ownership | Trump organization affiliates own 80% |
| Controversies | Potential for exploitation, legal issues, political commercialization criticism |
| Market Response | Market cap of $5.5 billion on launch day, expected future price volatility |
| Purpose | Claim to be maintained as a meme coin, not an investment opportunity |
Implications and Precautions for Readers
- Understanding Investment Risk
$Trumphas extreme price volatility typical of meme coins. Approach it strategically, monitoring long-term market trends rather than engaging in short-term speculation. - Legal and Ethical Considerations
The Trump organization’s large token holdings require ongoing scrutiny regarding the investment structure. You should also be aware of the project’s legal and ethical context. - Market-Wide Ripple Effects
Depending on the success of $Trump, public interest in meme coins and cryptocurrencies could be reignited, or conversely, it could end in excessive hype. Closely observe market sentiment.
Trump’s cryptocurrency project is receiving significant attention from political, economic, and technological perspectives and has the potential to influence the future direction of the cryptocurrency market. However, it is important for investors to always make cautious judgments and decide after conducting sufficient research. Discerning judgment leads to successful investments.
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*Source URL:
https://www.bbc.com/news/articles/c9vmym2jvy9o
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