Donald and Melania Trump create their own cryptocurrencies: What's their impact

Content

• Motives for launching
• Market impact and volatility
• Ownership and ethical issues
• Wider implications
• IVANKA TRUMP token
• Conclusion

Motives for launching

The creation of these cryptocurrencies seems to be a strategic move aimed at capitalizing on the rapidly growing digital asset market.

It is worth noting that Donald Trump has previously criticized cryptocurrencies, calling them a "scam." However, during his 2024 presidential campaign, he embraced digital assets and expressed his intention to make the United States a leader in the crypto industry, aiming to turn the country into the "crypto capital" of the world.

The launch of Trump and Melania allows the Trump couple not only to take advantage of a lucrative financial opportunity but also to demonstrate their commitment to cryptocurrencies, which could potentially affect future regulatory initiatives.

Market impact and volatility

Trump's debut was accompanied by a rapid rise in price - from the initial $3 to a high of $76.94, after which the price stabilized around $50.

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This rapid growth underscores the volatile nature of memecoins, which often experience significant value fluctuations due to market sentiment rather than intrinsic value.

Similarly, Melania saw an 800 percent increase in value shortly after launch.

Ownership and ethical issues

Around 80 percent of the Trump token supply is controlled by entities affiliated with the Trump Organization, including CIC Digital and Fight Fight Fight LLC.

This concentration of ownership raises ethical questions and concerns about possible conflicts of interest, especially given Trump's upcoming presidency and his promises of a favorable environment for the crypto industry.

Critics argue that such actions could undermine efforts to legitimize the cryptocurrency sector and reduce investor confidence.

Wider implications

The Trumps' entry into the cryptocurrency market has had a significant impact on the overall digital asset landscape. Bitcoin, the leading cryptocurrency, hit an all-time high of $109,000 amid rumors that the Trump administration would introduce favorable measures for the crypto industry.

However, industry experts warn that the proliferation of memecoins such as Trump and Melania may add risks to the market due to their speculative nature and lack of intrinsic value.

IVANKA TRUMP token

Today, rumors have surfaced online that a token called "IVANKA TRUMP" (ticker: IVANKA) has appeared on the cryptocurrency market. However, there has been no official confirmation from Ivanka Trump or her representatives about the creation or support of this cryptocurrency.

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Conclusion

The creation of the Trump and Melania cryptocurrencies by Donald and Melania Trump is a significant and unconventional step in the field of digital assets for a political figure and his wife.

While these initiatives may strengthen the Trumps' financial position and align with their vision of a crypto-centric America, they also raise important questions about market stability, investor protection, and the ethical responsibility of public figures involved in financial enterprises.

We also wrote that Trump named the person in charge of the US policy in the field of AI and cryptocurrencies.

Sources: Politico, Sky News, Barron's, Investor's Business Daily, Reuters.