In a bold and unexpected move, U.S. President-elect Donald Trump has entered the world of cryptocurrency. On the eve of his inauguration as the 47th president of the United States, Trump unveiled his own digital currency—a meme coin aptly named $Trump—which has already skyrocketed in value.

The venture, orchestrated by CIC Digital LLC—an affiliate of the Trump Organization—has taken the financial world by storm. CIC Digital is no stranger to branding, having previously marketed Trump-branded merchandise such as shoes and fragrances. This time, they have ventured into the volatile and unpredictable world of meme coins, digital tokens known for their internet virality and speculative nature rather than intrinsic value.

A Meteoric Rise

Within hours of its release, $Trump surged to a market capitalization of nearly $5.5 billion, according to CoinMarketCap.com. Despite the staggering valuation, critics have raised eyebrows over the coin’s structure and intent. CIC Digital LLC and Fight Fight Fight LLC—a recently formed Delaware-based company—own a commanding 80% of the tokens, leaving many to question the financial implications for Trump himself.

Trump announced the coin’s launch on Friday night via his social media platform, Truth Social, with characteristic bravado: “My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING!” The coin’s official website reinforced the messaging, describing it as a tribute to “a leader who doesn’t back down, no matter the odds.”

The initial release of 200 million tokens will be followed by an additional 800 million over the next three years, further fueling market speculation.

Controversy and Criticism

While $Trump’s explosive debut has captured the attention of cryptocurrency enthusiasts, it has also drawn sharp criticism. The coin’s website includes a disclaimer that it is “not intended to be, or the subject of” an investment opportunity or a political statement. However, the timing—just days before Trump’s inauguration—has raised questions about his motives.

“Trump owning 80 percent and timing the launch hours before inauguration is predatory and many will likely get hurt by it,” said Nick Tomaino, a prominent crypto venture capitalist, in a social media post. Critics argue that the coin’s rapid rise is a classic example of a pump-and-dump scheme, where early investors profit at the expense of those who buy in later.

Crypto’s Future Under Trump

Despite the backlash, Trump’s foray into cryptocurrency aligns with his recent rhetoric. At a Bitcoin conference in Nashville last year, he declared that America would become “the crypto capital of the planet” under his leadership. His sons, Erik and Donald Jr., have also dabbled in the sector, announcing their own crypto venture in 2024.

Many in the crypto industry are optimistic that Trump’s administration will foster a more favorable regulatory environment. President Joe Biden’s tenure saw increased scrutiny of the sector, with regulators cracking down on fraud and money laundering by targeting major exchanges. Investors now hope that Trump’s policies will provide the industry with much-needed breathing room.

A Risky Bet

As with any cryptocurrency, investing in $Trump carries significant risks. Meme coins are notoriously volatile, with their value often driven by internet hype rather than fundamental utility. Critics warn that the coin’s high valuation could collapse just as quickly as it rose, leaving late investors with substantial losses.

Still, for Trump’s supporters, $Trump is more than a financial instrument; it’s a symbol of his larger-than-life persona and his commitment to “winning” at any cost. Whether the coin will maintain its momentum or become another cautionary tale in the crypto world remains to be seen.