Key Insights
- President-elect Donald Trump launched a memecoin on the Solana blockchain, achieving a $9 billion market cap within hours and sparking a trading frenzy.
- The token’s distribution heavily favors insiders, raising concerns about transparency and potential market manipulation.
WASHINGTON (MarketsXplora) – President-elect Donald Trump stunned the cryptocurrency world on the eve of his inauguration by launching a memecoin on the Solana blockchain. Dubbed the TRUMP token, the move ignited a frenzy across markets, catapulting the token to a $9 billion market cap within hours—the fastest such rise in cryptocurrency history.
“This is beyond insane,” commented The Kobeissi Letter on X, reflecting the shockwaves that rippled across the industry.
A Year in the Making?
While unexpected, the launch wasn’t entirely without precedent. Over the past year, Trump has signaled a growing affinity for the crypto sector, engaging with key industry leaders, attending blockchain conferences, and committing to pro-crypto policies, including ousting SEC Chair Gary Gensler. Earlier initiatives, like the creation of World Liberty Financial, hinted at Trump’s ambitions in the space. However, the launch of a tradable token marked uncharted territory.
Initial skepticism about the token’s legitimacy was quickly dispelled as Solana exchange Jupiter confirmed its authenticity. The news prompted a surge of activity, with Solana’s daily trading volume skyrocketing to record highs—$9.2 billion on the day of the launch, followed by $9.34 billion the next.
Critics Slam Trump’s Memecoin as “Insider Jackpot” Amid Trading Frenzy
The token’s distribution has raised eyebrows. Only 20% of the total supply is currently in circulation, with half allocated to public trading and the remainder locked for liquidity. The remaining 80% is reserved for insiders, including the creators and CIC Digital, an affiliate of the Trump Organization. These tokens will vest gradually over three years, with the first cliffs hitting in just three months.
Critics have highlighted concerns about the implications of this distribution. “That is a wild distribution for a meme coin,” said investigative YouTuber CoffeeZilla. He noted that the bulk of the supply will be controlled by insiders during Trump’s presidency, all stored in a single wallet.
$TRUMP coin is a scam and embarrassing for all US citizens.
Essentially, it allowed insiders to snipe the entire supply at launch.
We should hope for better from our leaders. Just because the other side is corrupt doesn’t give you a license to do the same.
I hope people on… pic.twitter.com/yHgfdQhZqz
— Dr. Danish (@operationdanish) January 18, 2025
The token launch caused cascading effects across the broader crypto market. Trump’s NFT card collection saw its prices quadruple within hours, fueled by speculation that NFT holders might receive token allocations—a claim teased but unconfirmed on the official website.
One investor reaped spectacular gains, turning a $1.1 million initial purchase of TRUMP tokens into $90 million through strategic sales. Meanwhile, Binance Futures announced plans to introduce perpetual contracts for the memecoin, offering up to 25X leverage.
Reactions from the Crypto Community
The memecoin debut elicited mixed reactions. Many were thrilled by the rapid market activity. “SOL is ripping, and everything on-chain is nuking as people panic sell to FOMO into Trump’s memecoin,” observed author Jason Williams. Others expressed skepticism, questioning the ethical implications and potential reputational damage to the crypto sector.
“It’s hard to see this as anything but a pump-and-dump scheme,” said Rotki founder Lefteris Karapetsas. Crypto trader CL expressed concern that while the memecoin might onboard new users, it could also lead to significant losses, deepening mistrust in the industry.
Market analysts predicted more volatility ahead. “A Trump Administration is simply an endless number of white swans for the asset class,” noted McKenna, managing partner at Arete Capital, warning that the rally could signal a market peak.
Read also! How to Buy $TRUMP Memecoin on Solana
Regulatory and Symbolic Overtones
The timing of the launch—on Gensler’s final day as SEC chair—underscored the administration’s pro-crypto stance. Observers noted the token’s website explicitly stated it was not intended as an investment or security, reflecting an apparent effort to sidestep potential regulatory scrutiny.
However, questions remain. Conor Grogan, head of product business operations at Coinbase, flagged the curious origin of the token’s funding, noting initial deposits from exchanges Gate.io and Binance—platforms inaccessible to U.S. users.