What to Know About Trump Cryptocurrency Meme Coins: NPR

President Trump launched a cryptocurrency coin that is attracting attention from experts as its value yo-yos in its first days of trading.

The official “meme coin,” known as $TRUMP, launched Friday for nearly $6.50 and hit a high of $73 on Sunday. A few hours after his inauguration, it had fallen below $40. Its market capitalization on Monday was around $7.6 billion, according to CoinGecko.

First lady Melania Trump also launched a coin, $MELANIA, at nearly $7 on Sunday. This coin also surged in early trading, surging above $13 at its peak, before falling below $5 on Monday afternoon. according to CoinGecko.

“My NEW official Trump meme is HERE! It’s time to celebrate everything we stand for: WIN!,” Trump wrote in an article ontelling his supporters to “Have fun!” »

Here’s what you need to know about the future of coins and cryptocurrencies under the Trump administration.

What is a meme coin?

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

Cryptocurrencies are unpredictable, volatileand have been exploited by criminals to commit 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 piece is marketed with an image of the president raising his fist with the words “FIGHT FIGHT FIGHT” – a phrase he dubbed “a battle cry” after surviving an assassination attempt in July 2024. The first lady’s coin represents a black and white photo of Melania smiling, hands clasped in front of her face.

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

In the past, Trump has criticized cryptocurrency, calling it a “scam” and “potentially a disaster waiting to happen” during a crisis. interview with FOX Business in 2021. But he has since embraced the sector and is on the campaign trail promised to do the United States”the crypto capital of the planet” by ending previous coercive measures and appealing to friendly regulators.

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

Questions have been raised regarding Trump’s coin and potential conflicts of interest given that Trump promised to promote the crypto industry as president.

Trump chose Paul Atkins, a former U.S. Securities and Exchange Commissioner and CEO of a consulting firm with crypto clients, to lead the SEC. Atkins is also a supporter of cryptocurrencies and has expressed reservations on the SEC’s enforcement actions against the domestic crypto industry. David Sacks, a venture capitalist, was also named by Trump as the nation’s first crypto and artificial intelligence czar.

A GOP-controlled Congress could also help strengthen cryptocurrency. Arkansas Republican Rep. French Hill, chairman of the House Financial Services Committee, has been pushing for measures to help crypto development. There is skepticism about Congress’s warmth toward cryptocurrencies, including from digital assets expert Carol Alexander, who called it “a step in the wrong direction.”

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

Preston Byrne, a cryptocurrency lawyer, said Trump’s involvement in cryptocurrencies raises legal questions and could have a negative impact if it fails.

“Trump himself will also have to face the fact that his political fortunes will be tied to an asset that the market, not man, controls,” Byrne said. wrote in an article on Sunday. “If $TRUMP collapses, it could affect its own political clout in Washington.”

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