President Trump, who has pledged to make the United States the cryptocurrency capital of the world, has gotten a head start on those plans by launching new his-and-hers coins – the $Trump and $Melania coins – during the weekend. As of Monday afternoon, the day of Mr. Trump’s declaration inaugurationthe two digital currencies were worth a total of $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 image of a shiba inu dog. Dogecoin has become a favorite cryptocurrency of billionaire Elon Musk, who even named his federal cost-cutting group, the Department of Government Efficiency, after it.
Mr. Trump announcement his cryptocurrency Friday evening, writing on social media that the coin celebrates “everything we stand for: WIN!” » The meme piece is marketed with an image of Trump holding a raised fist superimposed on 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 coin with a black-and-white photo of the First Lady smiling and with her hands clasped in front of her face, as if to thank her.
The new meme coins are a way for Mr. Trump to leverage his online popularity, attracting his supporters to the project, noted Joe McCann, CEO of digital asset investment firm Asymmetric. Products, like Mr. Trump’s social media company, tend to attract individual investors, rather than large institutional U.S. firms, who buy shares to show their support for the president.
“Meme coins largely represent communities on the internet represented by a financial asset – they are the tokenization of internet culture,” McCann told CBS MoneyWatch. “Donald Trump is arguably the most popular person on the Internet, so by starting a meme corner, members of his community can connect more with him.”
Mr. Trump sought to monetize your name with numerous business ventures, ranging from a licensing deal for non-fungible tokens, or NFTs, which earned him $7.2 million, to a $59.99 this earned him $300,000 in royalties. It also recently rolled out Trump-branded merchandise. sneakersa “Fight, Fight, Fight” brand scent And watches.
Here’s what you need to know about Trump coins.
How much are Donald and Melania Trump meme coins worth?
As of Monday afternoon, the Trump coin had a market cap of $8.3 billion, while Melania Trump’s cryptocurrency was valued at $1.2 billion, according to CoinMarketCap.
Mr. Trump’s meme coin skyrocketed after its launch, reaching a high of nearly $75 each. But the price has lost about 45% of its value since then, settling at around $40 per coin as of Monday afternoon. Still, this represents an increase of more than 400% from its initial price, according to data from CoinMarketCap.
The Melania Trump meme coin got off to a slightly rougher start, falling more than 20% to around $5.40 per coin on Monday.
Are $Trump and $Melania real investments?
The Trump Meme Coin website says the president’s cryptocurrency is intended as an expression of support, not an investment opportunity.
The Melania site describes the meme coins as “digital collectibles,” adding that they “are not intended to be, or to be the subject of, any investment opportunity, investment contract or security of any kind whatsoever.
Investors typically look at balance sheets and income statements when deciding where to allocate their funds, while foreign exchange traders look at economic factors such as trade flows and GDP growth when placing their investments. But relying on these traditional metrics doesn’t work with meme coins because they aren’t tied to an underlying asset or economy, experts note.
“Attempting to use traditional financial models to value a coin will fail miserably,” McCann noted. “Business schools don’t teach students how to measure culture, virality, or communities.”
Are meme coins risky?
Meme coins are a highly volatile part of the crypto industry that often start out as a joke and have no intrinsic value, although their price can skyrocket if enough people are willing to buy them. Because of this dynamic, their prices are subject to sudden and extreme fluctuations.
“Meme coins are among the most volatile assets in the world and should be treated with caution,” McCann said.
The site selling the $Trump coin warned buyers that its price “may be extremely volatile and you could incur substantial losses in connection with a sale or other disposition of Trump Memes.”
Meme coins grew in popularity in 2021 and 2022, but some inexperienced investors were unprepared for the extreme volatility of digital currencies, noted Nigel Green, CEO of wealth management firm deVere Group, in an e- email. As a result, he advises investors to be careful before investing their money in Trump meme coins.
How can you buy the Trump and Melania meme coins?
Meme coins are available for purchase on an app called Moonshot, which allows people to purchase meme coins with Apple Pay, a credit or debit card, cryptocurrency, or payment apps like PayPal and Venmo .
The Trump meme coin website notes that all transactions “ARE FINAL AND NON-REFUNDABLE. We will have no liability for Trump Memes that are lost, misplaced, or inaccessible.”
What is the view of the cryptocurrency sector?
Some crypto enthusiasts welcomed the release of the Trump coin, saying it reflects the president’s support for an industry that felt unfairly targeted by the Biden administration. Mr. Trump has promised to usher in pro-crypto regulations and has chosen crypto supporters for key government positions.
For example, Mr. Trump appointed cryptocurrency supporter Paul Atkins to head the Securities and Exchange Commission, reinforcing optimism that the new president will deregulate the sector.
Other cryptocurrencies are gaining value on anticipation that the second Trump administration will benefit the sector. Bitcoin, for example, has soared more than 50% since the November election, hitting a record high of $109,241 ahead of Mr. Trump’s. inauguration ceremony.
contributed to this report.