TRUMP, a new meme coin launched by President-elect Donald Trump, has quickly become the second-largest meme token by market cap, surpassing Pepe (PEPE) and Shiba Inu (SHIB).
As of now, TRUMP has a market cap of around $13.5 billion, trailing only Dogecoin (DOGE), which stands at around $54 billion. The token was introduced on Truth Social and X just two days before Trump’s inauguration, symbolizing his ideals and a celebration of “WINNING.”
TRUMP’s market value skyrocketed to about $8 billion within three hours of its launch, with prices exceeding $30 due to listings on major exchanges like Upbit, Kraken, and Binance.
Following Coinbase’s announcement to consider listing TRUMP, the token’s value doubled, reaching around $69, marking a 230% increase in just 24 hours. Meanwhile, other meme coins like DOGE and SHIB saw declines of about 7%, and PEPE dropped by 11%.
Despite the excitement, there are concerns regarding the token’s centralized ownership, with 80% held by companies linked to the Trump Organization. This raises issues about potential market manipulation and the project’s long-term sustainability. Investigative journalist Coffeezilla criticized the launch, warning that less informed Trump supporters could face financial losses.
The TRUMP token has gained traction, with over 400,000 users on the Moonshot app, which has become the top finance app on the US Apple App Store. However, venture capitalist Chris Burniske expressed discomfort with the token’s allocation but acknowledged its potential to inspire innovation in the crypto space.
Ryan Selkis, founder of Messari, suggested that the team should burn 75% of the token supply to address distribution concerns, advocating for a more balanced ownership structure to prevent future issues.
Overall, while TRUMP has made a significant impact on the meme coin market, its centralized nature and distribution concerns could pose challenges ahead.
