Donald and Melania Trump have launched their first meme coins, $Trump and $Melania. Here’s what you should know.
President Trump, who has vowed to turn the United States into the cryptocurrency capital of the world, got a head start on those plans by launching new coins of his own — the Trump and Melania dollars Coins – During the weekend. As of Monday afternoon, Mr. Trump’s day openingThe value of the two digital currencies combined reached $9.5 billion.
Meme cryptocurrencies, which have no economic or transactional value, are cryptocurrencies associated with Internet trends, such as Dogecoin, which was inspired by Picture of a Shiba Inu dog. Dogecoin has become the cryptocurrency of choice for billionaire Elon Musk, who lent its name to his federal cost-cutting group, the Department of Government Efficiency.
Mr. Trump Announce cryptocurrency on Friday night, writing on social media that the coin celebrates “everything we stand for: winning!” The meme is being marketed with an image of Trump raising his fist over the phrase “FIGHT FIGHT FIGHT,” a reference to Trump’s reaction to an assassination attempt at a political rally in July.
Melania Trump on Sunday announced her own coin bearing a black-and-white image of the First Lady smiling with her hands clasped in front of her face as if in thanks.
Joe McCann, CEO of digital asset investment firm Ametric, noted that the new meme coins are a way for Mr. Trump to capitalize on his online popularity and attract his supporters to the project. Products such as Mr Trump’s social media company tend to attract individual investors, rather than large US institutional companies, who buy shares as a way to show support for the president.
“Meme coins are very much online communities represented by financial assets — they are an iconic symbol of internet culture,” McCann told CBS MoneyWatch. “Donald Trump is arguably the most popular person on the internet, so by launching a meme coin, members of his community can get even closer to him.”
Mr. Trump sought this Monetize his name With numerous business ventures, ranging from a licensing deal for non-fungible tokens, or NFTs, which earned him $7.2 million, to… $59.99 Bible Which earned him $300,000 in royalties. He recently launched a Trump-themed brand sneakers“Fight, fight, fight” brand. perfume and Watches.
Here’s what to know about Trump coins.
What is the value of Donald and Melania Trump coins?
As of Monday afternoon, the market cap of Trump’s meme coin was $8.3 billion, while Melania Trump’s cryptocurrency was worth $1.2 billion, according to CoinMarketCap.
Mr. Trump’s coins soared after their debut, reaching a peak of about $75 each. But the price has lost about 45% of its value since then, settling at around $40 per coin on Monday afternoon. However, this represents an increase of more than 400% from its initial price, CoinMarketCap data shows.
Melania Trump’s meme coin had a bit of a rough ride, falling more than 20% to around $5.40 per coin on Monday.
Is Trump and Melania’s investment real?
Trump Meme Coin says the president’s cryptocurrency is intended as an expression of support — not an investment opportunity.
Melania’s website describes memes as “digital collectibles,” adding that they are “not intended to be or be the subject of an investment opportunity, investment contract, or security of any kind.”
Investors typically examine balance sheets and income statements when deciding where to allocate their money, while currency traders examine economic factors such as trade flow and GDP growth when placing their investments. But relying on these traditional measures does not work with meme currencies because they are not tied to an underlying asset or economy, as experts point out.
“Attempting to use traditional financial models to value the meme coin will fail miserably,” McCann noted. “Business schools don’t teach students how to measure culture, reach, or communities.”
Are coins risky?
Memes are a highly volatile corner of the cryptocurrency sector and often start out as a joke and have no intrinsic value, though they can rise in price if enough people are willing to buy them. Because of these dynamics, their prices are subject to sudden and extreme fluctuations.
“Memecoins are some of the most volatile assets on Earth and should be treated with caution and care,” McCann said.
The site selling the Trump coin warned buyers that its price “may be highly volatile and you may suffer significant losses in connection with the sale or other disposition of Trump memes.”
Meme cryptocurrencies gained popularity in 2021 and 2022, but some inexperienced investors were not prepared for the extreme volatility of cryptocurrencies, Nigel Green, CEO of wealth management firm deVere Group, noted in an email. As a result, he advises investors to be careful before putting their money into Trump meme coins.
How can you buy Trump and Melania meme coins?
Memecoins are available for purchase on an app called Moonshot, which allows people to purchase memecoins using Apple Pay, 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 responsibility or liability for any lost, misplaced or inaccessible Trump Memes.”
What is the opinion of the cryptocurrency industry?
Some cryptocurrency enthusiasts applauded the release of the Trump coin, saying it reflected the president’s support for an industry that felt unfairly targeted by the Biden administration. Mr. Trump has promised to introduce cryptocurrency-friendly regulations and has picked crypto supporters for key government positions.
For example, Mr. Trump nominated cryptocurrency supporter Paul Atkins to head the Securities and Exchange Commission, fueling optimism that the new president will deregulate the sector.
Other cryptocurrencies are gaining value on the hope that a second Trump administration will benefit the sector. Bitcoin, for example, has risen more than 50% since the November election, rising to a record peak of $109,241 before Trump’s campaign. Opening ceremony.
She contributed to this report.
