President Trump, who has vowed to turn the U.S. into the cryptocurrency capital of the world, got a head start on those plans by debuting new his-and-her meme coins — the $Trump and $Melania coins — over the weekend. As of Monday afternoon, the day of Mr. Trump’s inauguration, the two digital currencies were worth a combined $9.5 billion.
Meme coins, which have no economic or transactional value, are cryptocurrencies linked to internet trends, such as Dogecoin, which was inspired by the image of a shiba inu dog. Dogecoin became a favored cryptocurrency of billionaire Elon Musk, who even named his federal cost-cutting group, the Department of Government Efficiency, after it.
Mr. Trump announced his cryptocurrency on Friday night, writing on social media that the coin celebrates “everything we stand for: WINNING!” The meme coin is being marketed with a picture of Trump holding a fist up superimposed over the words “FIGHT FIGHT FIGHT,” a reference to Trump’s response to an assassination attempt at a political rally in July.
On Sunday, Melania Trump announced her own piece with a black and white photo of The Smiling First and with her hands together in front of her face, as in gratitude.
The new meme coins are a way for Mr. Trump to leverage his online popularity, drawing his supporters to the project, noted Joe McCann, CEO of digital assets investment firm Asymmetric. The products, like Mr. Trump’s social media company, tend to attract individual investors, rather than large U.S. institutional firms, who buy shares as a way to show support for the president.
“The pieces even largely constitute the web communities constituted through a monetary asset — they’re the tokenization of web culture,” McCann told CBS MoneyWatch. “Donald Trump is undoubtedly the most popular user on the web, so by launching a meme opus, members of his network can still gain proximity to him. “
Trump has tried to monetize his call with commercial companies, ranging from a license agreement for inesascinating tokens, or NFT, which earned him $ 7. 2 million, to a bible of $ 59. 99 that earned him $ 300,000 in royalties. Perfume, and “fight, fight, fight” brand watches.
Here’s what to know about the Trump coins.
Until Monday afternoon, Trump Meme currency had a market limit of $ 8. 3 billion, while the melania Trump cryptocurrency valued at $ 1. 2 billion, according to Coinmarketplacecap.
Mr. Trump’s own corner rose after debuting, peaking at nearly $75 each. But the value has lost about 45% of its cost since then, settling at around $40 consistent with coins on Monday afternoon. Still, this represents a construction of more than 400% of its initial value, it shows the knowledge of the monkey coin layer.
The Meme Meme de Melania Trump currency had a more rocky start, sinking more than 20% to around $ 5. 40 according to Coin on Monday.
The Trump meme coin website says the president’s cryptocurrency is meant as an expression of support — not an investment opportunity.
Melania describes meme coins as “digital collectibles”, and added that “they are not destined to be or be the issue of any investment opportunity, investment contract or security of any kind. “
Investors sometimes read about balance sheets and income source statements when allocating their funds, while monetary investors will read about economic points such as advertising flow and GDP expansion when implementing their investments. But depending on those classic measurements, not coin paintings because they are not connected to an asset or the underlying economy, keep the experts in mind.
“Trying to use classical monetary models to evaluate a piece of memes will fail miserably”, Ed McCann. “Business schools teach academics how to measure culture, virality, or communities. “
Meme coins are a highly volatile corner of the crypto sector that often start as a joke and have no intrinsic value, although they can surge in price if enough people are willing to buy them. Because of those dynamics, their prices are prone sudden and extreme swings.
“Meme coins are some of the most volatile assets on earth and should be treated with caution and care,” McCann said.
The $$ Trump room promotion has warned buyers that its value “can be incredibly volatile and that it can go through really extensive losses in relation to a sale or other Trump mind. “
Meme coins gained popularity in 2021 and 2022, however, some green investors were unprepared for the excessive volatility of virtual currencies, Nigel Green, CEO of Wealth control company Devere Group, noted in an email, advises investors to have old-fashioned putting their cash into Trump meme coins.
The coins must be obtained to acquire in an app called Monshot, which allows other people to buy portions even with Apple Pay, Credit or Crypto, Cryptocation or Payments App Programs, such as PayPal and Venmo.
The Trump meme coin website notes that all transactions “ARE FINAL AND NON-REFUNDABLE. We shall have no responsibility or liability for any Trump Memes that are lost, misplaced or inaccessible.”
Some cryptocurrency enthusiasts have welcomed the liberation of Trump Meme Coin, saying that the president reflects for an industry that felt unfairly directed through the Biden administration. Trump has promised to mark the beginning of friendly regulations with cryptocurrencies and has selected cryptographic sponsors for key government positions.
For example, Trump appointed cryptocurrency supporter Paul Atkins to head the Securities and Exchange Commission, reinforcing optimism that the new president will unleash the sector.
Other cryptocurrencies gain in the price in the anticipation that at the time Trump’s management will obtain advantages for the sector. Bitcoin, for example, has risen more than 50% from the November elections, achieving a record peak of $ 109,241 before the Trump opening ceremony.