The newly elected United States (U.S.) President Donald Trump launched his own cryptocurrency on Friday night, and the so-called “meme coin” TRUMP already has an estimated value of 70 billion dollars.
By launching the cryptocurrency, Trump seriously shook this market, and since Friday, a decline in all cryptocurrencies could be noticed, while his saw an incredible 200 percent rise.
The cryptocurrency $TRUMP rose to just above 75 dollars on Sunday morning and is currently valued at 64.55 dollars.
“Trump is reportedly set to issue executive orders for Bitcoin and the crypto industry on his first day in office or soon after. He is expected to adopt a lighter regulatory framework. During the campaign, Trump also stated that he would create a Bitcoin strategic reserve,” media reports say.
As for Trump’s cryptocurrency, it falls under the so-called category of “meme coins,” which are cryptocurrencies inspired by internet memes or jokes in online communities.
They often start as jokes or social experiments but can gain significant market value and attention due to their viral nature and community support.
Meme coins are usually built on existing blockchain platforms, such as Ethereum or Solana, using the underlying technology of these platforms to create and distribute tokens. They often have large supplies, with trillions or even quadrillions of tokens in circulation.
The value of meme coins is primarily driven by the community’s positive reaction, trends on social media, and speculation.
Unlike cryptocurrencies like Bitcoin, which have established use cases and fundamental values, meme tokens often lack intrinsic value. Their value is largely determined by what people are willing to pay for them, influenced by factors like viral marketing or community support.
Examples of “meme coins” in today’s cryptocurrency world include Dogecoin (DOGE), inspired by the “Doge” meme featuring the Shiba Inu dog breed. It was created in 2013 and has since gained significant popularity.
Shiba Inu (SHIB) cryptocurrency was launched in 2020 and also quickly became popular.
Similarly, Pepe Coin (PEPE), which was launched in 2023, reached a market capitalization of over a billion dollars within just a few weeks.
Regarding the risks that meme coins bring, they primarily involve high volatility, i.e., price fluctuations in the market. Also, most meme coins lack adequate use in the real world and are often used as a tool for online scams.
However, due to the euphoria they bring, some investors may choose to take the risk of investing, which can also bring significant profit, Klix.ba writes.
