Just days before being sworn into office, US president-elect Donald J Trump launched the cryptocurrency token $TRUMP. While many are concerned about the ethical ramifications of an incoming head of state dabbling in deregulated digital currency, the token has surged in market value mere hours after going on sale.
Trump launching the new crypto "meme" token aligns with his promises during his successful campaign trail, as it looks like the industrialist has embraced the technology and the industry surrounding it. "Join my very special Trump Community. GET YOUR $TRUMP NOW," wrote the business magnate on his social-media platform, Truth Social.
$TRUMP is a meme token, and is being headlined by CIC Digital LLC, closely affiliated with the Trump conglomerate. CIC Digital also sells Trump-branded merchandise, which includes perfumes, shoes, and even trading cards.
Trump and his family are said to have a direct and significant stake in the $TRUMP token. With his about to assume the office of head of state in the US, this invites inevitable debate about ethical competition practices.
While globally, cryptocurrencies are deregulated, all governments en-masse have tried to use their own market watchdogs to bring crypto trades under their respective purview. Like the SEBI in India, the SEC in the US is the organisation that is expected to oversee the country's trade in cryptocurrencies.
Trump's definitive moment in crypto came last year at the Bitcoin conference when he announced new regulations if he came to power. So far, Trump has delivered, starting with his pick for SEC, Paul Atkins, a long-time cryptocurrency advocate. Atkins replaces outgoing SEC Chairman Gary Gensler, famously anti-bitcoin.
Trump and crypto—a new love story?
This Friday, bitcoin crossed the hallowed USD 100,000 mark yet again, as the world looks on at Donald Trump assuming the office of the President of the United States in the coming days.
From calling bitcoin a scam just a few years ago, this turnaround is quite iconic, especially after the incoming US president promised a crypto stockpile and digital currency-friendly administration.
Bitcoin breached USD 100,000 on Trump's election victory, then slid to USD 90,000 last week. In contrast, it was in the USD 19,000 to USD 20,000 range just two years ago.
If Trump's election promises are to be believed, the US administration would stockpile the cryptos seized through raids and other actions by law enforcement instead of auctioning them off.
Crypto advocates believe that such a government stockpile would normalise Bitcoin—and cryptocurrencies, in general—essentially legitimising it in the eyes of the public. What the Trump administration would do is yet to be seen. Still, crypto markets are clearly celebrating the swearing-in of the new US president.