What to know about Trump’s cryptocurrencies: NPR

President Trump launched a cryptocurrency that is attracting intense attention from experts due to its value rising in the first trading days.

The official “meme coin,” known as $TRUMP, launched on Friday for approximately $6.50 and rose to a high of $73 on Sunday. Hours after his inauguration, the price dropped to less than $40. On Monday, the market value reached about $7.6 billion. According to CoinGecko.

First Lady Melania Trump on Sunday also launched a meme coin, $MELANIA, at a price of approximately $7. The coin also jumped in early trading, rising above $13 at its peak, before falling below $5 as of Monday afternoon. According to CoinGecko.

“The new official Trump meme has arrived! It’s time to celebrate everything we stand for: Winning!”, Trump he wrote in a post on XSupporters are asked to “Enjoy!”

Here’s what you should know about currencies and the future of cryptocurrencies under the Trump administration.

What is Mimi coin?

A meme coin is a type of cryptocurrency inspired by a meme or other internet trend. One of the most famous is Dogecoin, which was created as a joke and features a dog as its mascot. It became popular in 2013 and again in 2021.

Cryptocurrencies are unpredictable volatileIt has been exploited by criminals to engage in fraud.

Cryptocurrency exchange FTX collapsed in 2022 and its founder, Sam Bankman-Fried, was sentenced to 25 years in prison for his crimes.

The Trump meme is being marketed with an image of the president raising his fist with the phrase “FIGHT FIGHT FIGHT” — a phrase he gave his “battle cry” after surviving an assassination attempt in July 2024. The First Lady coin features a Black and white photo of Melania smiling with her hands clasped in front of her face.

What is the future of cryptocurrencies under the new Trump administration?

In the past, Trump has criticized cryptocurrencies, calling them a “scam” and “potentially a disaster waiting to happen” during his presidency. Interview with FOX Business in 2021. But he has embraced the sector since then and in his election campaign Promise to make United States “The crypto capital of the planet“By ending previous enforcement actions and bringing in friendly regulators.

The Trump family also has financial interests in World Liberty Financial, a cryptocurrency-related company.

There have been questions about Trump’s meme coin and potential conflicts of interest given that Trump has promised to promote the cryptocurrency industry as president.

Trump chose Paul Atkins, a former U.S. Securities and Exchange Commissioner and CEO of a consulting firm with cryptocurrency clients, to lead the SEC. Atkins is also a supporter of cryptocurrencies and has done just that He expressed his reservations About the enforcement actions taken by the SEC against the local cryptocurrency industry. David Sachs, a venture capitalist, was also appointed by Trump as the country’s first cryptocurrency and artificial intelligence czar.

A GOP-controlled Congress could also help boost the cryptocurrency. Arkansas Republican Representative French Hill, chairman of the House Financial Services Committee, called for measures to help the development of cryptocurrencies. There are doubts about Congress’s warmth toward cryptocurrencies, including from digital asset experts Carol AlexanderWho described it as “a step in the wrong direction.”

“We have to regulate space,” Alexander, a professor at the University of Sussex, previously told NPR.

Preston Byrne, a cryptocurrency lawyer, said Trump’s involvement in cryptocurrencies raises legal questions and could have a negative impact if he doesn’t succeed.

“Trump himself will also have to deal with the fact that his political fortunes will be tied to assets controlled by the market, not by men,” Byrne added. He wrote in another Sunday. “If Trump’s dollar collapses, it could affect his political influence in D.C.”

NPR’s Rafael Nam and Joe Hernandez contributed to this report.