PARIS/SINGAPORE – On Monday, Donald Trump’s freshly launched cryptocurrency surpassed $10 billion in market value as he began his second term as U.S. president, attracting billions in trading activity. This occurred while bitcoin achieved an all-time high shortly before Trump’s return to the White House.

Unveiled on Friday, Trump’s “meme coin,” known as $TRUMP, jumped from under $10 on Saturday to an impressive peak of $74.59, before slightly retreating on Monday.

The digital token features branding that includes an image related to an assassination attempt on Trump in July, reflecting his expanding interests in cryptocurrency, which already encompasses World Liberty Financial.

In a similar move, Melania Trump introduced her coin, $MELANIA, on Sunday, which quickly surged to a market cap exceeding $1 billion.

According to its website, CIC Digital, a partner of Trump’s business, holds four-fifths of the total supply of the Trump coin, alongside another entity dubbed Fight, Fight, Fight. They describe the coins as “a manifestation of support for, and involvement with, the values and beliefs represented by the ‘$TRUMP’ symbol” and clarify that they are not meant as an investment or security.

The introduction of these coins surprised many in the cryptocurrency space and raised concerns.

“While it may be easy to dismiss this as another Trump publicity stunt, the creation of the official Trump token introduces significant ethical and regulatory dilemmas,” noted Justin D’Anethan, an independent crypto analyst in Hong Kong.

This month, the Trump Organization announced that the president would delegate the daily management of his extensive real estate, hotel, golf, media, and licensing enterprises to his children upon entering the White House.

By 12:30 PM EST (5:30 PM GMT), the value of Trump’s coin stood at $45.21, giving it a market capitalization of a little over $9 billion, as reported by CoinMarketCap, which listed it among the top 19 cryptocurrencies.

The 24-hour trading volume approached $40 billion, according to CoinMarketCap data.

The buzz around these so-called meme coins has contributed to a broader surge in cryptocurrency values, as traders and investors express optimism that Trump will fulfill his promise to act as a “crypto president,” facilitating a friendlier regulatory environment and encouraging greater ownership of digital assets.

Several key figures within Trump’s administration and his inner circle have connections to the crypto sector.

Earlier, bitcoin reached a record high of $109,071.86 in early European trading before retreating to around $105,297. The largest cryptocurrency has increased by over 10% this month alone.

Both Trump and Melania Trump’s tokens were developed on the relatively less known Solana blockchain, ranked as the third-largest blockchain network by CoinMarketCap.

The value of Solana’s coin also climbed over the weekend, reaching a peak of $294.33 on Sunday.

“The recent rise in interest in the cryptocurrency market can be attributed to the launch of the TRUMP and MELANIA coins right before the inauguration,” remarked Grzegorz Drozdz, a market analyst at Conotoxia Ltd.

Speculative assets

Peter Schiff, chief economist and global strategist at Euro Pacific Asset Management, noted the jump in $TRUMP’s value on social media, referring to it as the new digital gold.

Forbes estimates Trump’s net worth at $6.7 billion.

The anticipation of more relaxed regulations surrounding crypto policy has been warmly welcomed by the industry and has fueled a bitcoin rally following Trump’s election win in November.

Some analysts have raised alarms regarding the dramatic increases in new coin prices.

“Meme cryptocurrencies like these are susceptible to significant price swings and are generally viewed as speculative assets,” Drozdz of Conotoxia cautioned.

Trump’s coin signifies a merging of decentralized finance with the political sphere, but it also “obscures the boundaries between governance, profit, and influence,” D’Anethan explained.

“Is it appropriate for public figures, especially those with considerable political influence, to interfere in speculative markets? This is a matter regulators are unlikely to overlook,” he added.

The official websites for both Trump’s and Melania Trump’s coins refrain from labeling them as cryptocurrencies, preferring the term “fungible crypto assets” in their FAQs.