US President-elect Donald Trump launched his own cryptocurrency, the market capitalization of which quickly jumped to several billion dollars.
His launch of the meme coin, $Trump, comes as he prepares to take office on Monday as the 47th president of the United States.
The venture was coordinated by CIC Digital LLC — an affiliate of the Trump Organization — which previously sold Trump-branded shoes and fragrances.
Meme coins are used to build the popularity of a viral internet trend or movement, but they lack intrinsic value and are extremely volatile investments.
By Saturday afternoon, hours after its launch, $Trump's market capitalization had reached almost $5.5 billion (£4.5 billion), according to CoinMarketCap.com.
CIC Digital LLC and Fight Fight Fight LLC, a company formed in Delaware earlier this month, own 80% of the tokens. It's unclear how much money Trump stands to make from the venture.
“My NEW official Trump meme is HERE! Time to celebrate everything we stand for: WIN!” Trump wrote on his social media platform Truth Social when he announced the meme coin on Friday night.
About 200 million of the digital tokens have been issued and another 800 million will be released over the next three years, according to the coin's website.
“This Trump meme celebrates a leader who doesn't back down against the odds,” the website said.
It includes a disclaimer noting that the coin is “not intended to be or the subject of” an investment opportunity or security and “is not political and has nothing to do with” a political campaign, political office or government agency.
Critics accused Trump of profiting from the presidency.
“Trump owning 80 percent and timing the launch hours before the inauguration is predatory and they will very likely be hurt by it,” said Nick Tomaino, a crypto venture capitalist, in a social media post.
Such digital tokens are notorious for speculators using hype to boost value before selling at the top of the market, leaving latecomers to count their losses as the price crashes.
Cryptocurrency investors are hoping the Trump administration will give the industry a boost.
President Joe Biden's regulators cited concerns about fraud and money laundering as they cracked down on crypto companies by suing exchanges.
Trump has previously been tight-lipped about cryptocurrency, but at a Bitcoin conference in Nashville last year, he said America would be the “crypto capital of the planet” once he returned to Washington.
His sons Eric and Donald Jr. announced their own crypto venture last year.