Trump-Linked Cryptocurrency Projects Surge on His First Day Back in Office
Trump’s pledge to usher in a ‘golden age’ for crypto marks a stark departure from his predecessor’s regulatory stance.
The cryptocurrency ventures associated with U.S. President Donald Trump experienced a meteoric rise as he was sworn in for his second term. World Liberty Financial (WLF), a crypto project linked to Trump, reported raising $1 billion in token sales, while a newly launched Trump-branded meme coin surged past $10 billion in market capitalization.
WLF made the announcement on Monday, coinciding with Trump’s inauguration. The rally in Trump-related crypto assets underscores his administration’s pro-crypto stance, a sharp contrast to the regulatory crackdown on digital assets under former President Joe Biden.
A ‘Golden Age’ for Crypto?
Trump has repeatedly signaled his support for cryptocurrency, promising to foster a regulatory environment conducive to digital asset growth. WLF, which was founded and promoted by Trump, his sons, and Trump’s new special envoy to the Middle East, Steve Witkoff, was launched two months prior to the U.S. election.
In addition to WLF, a Trump-themed meme coin, $TRUMP, was introduced on Friday evening at the first-ever Crypto Ball in Washington, D.C., as part of the inauguration celebrations. Over the weekend, the coin’s value skyrocketed, climbing from under $10 to a peak of $74.59 before experiencing some volatility.
Adding to the Trump family’s crypto involvement, former First Lady Melania Trump launched her own token, $MELANIA, on Sunday, which also saw significant gains, pushing its market value beyond $1 billion.
Ethics and Regulatory Concerns
Despite the excitement, concerns over ethics and potential conflicts of interest have been raised regarding Trump’s direct involvement in cryptocurrency ventures while serving as president. The timing of WLF’s launch just before the election and the release of the $TRUMP meme coin during inauguration festivities have drawn scrutiny even within the crypto community.
“While it’s tempting to dismiss this as just another Trump spectacle, the launch of the official Trump token opens up a Pandora’s box of ethical and regulatory questions,” said Justin D’Anethan, an independent crypto analyst based in Hong Kong.
Preston Byrne, a prominent cryptocurrency lawyer, predicted that a civil lawsuit challenging the legitimacy of the $TRUMP coin was inevitable. “Someone will lose money, some lawyer will come up with a theory and file,” Byrne wrote in a blog post on Sunday.
Trump’s Expanding Influence in Crypto
Despite legal and ethical concerns, enthusiasm for Trump-backed crypto projects remains high. The Trump Organization recently announced that management of Trump’s various business ventures, including his real estate and media enterprises, would be transferred to his children during his presidency. However, the exact nature of his financial ties to WLF and $TRUMP remains unclear.
By Monday afternoon, the $TRUMP token was trading at $42.20, boasting a market capitalization of approximately $8.5 billion, according to CoinMarketCap. Trading volume in the previous 24 hours neared $40 billion, reflecting strong investor interest.
WLF also exceeded expectations, selling nearly 22 billion tokens on Monday alone. Notably, Tron founder Justin Sun, who was previously charged with fraud and securities violations under the Biden administration, invested $75 million into WLF, underscoring the industry’s optimism about Trump’s crypto policies.
Market Impact and Future Outlook
The renewed momentum in the crypto market coincided with Trump’s inauguration, driving a broader rally in digital assets. Bitcoin surged to $104,031 on Monday, marking a 7% increase for the month.
The Trump and Melania coins were launched on the Solana blockchain, the third-largest blockchain network by market capitalization. Following their debut, Solana’s native token saw a significant increase, reaching an all-time high of $294.33 over the weekend.
“The cryptocurrency market gained additional traction in recent hours due to the launch of the TRUMP and MELANIA cryptocurrencies just before the inauguration,” said Grzegorz Drozdz, a market analyst at Conotoxia Ltd.
Political and Financial Implications
The launch of $TRUMP has sparked debate over the intersection of politics and cryptocurrency. Some analysts view Trump’s involvement in digital assets as a positive force for the industry, while others warn that it raises questions about governance, transparency, and financial ethics.
“Should public figures, especially those with such political clout, wield this kind of sway in speculative markets? That’s a question regulators are unlikely to ignore,” D’Anethan noted.
Despite these concerns, Trump and his allies remain bullish on crypto’s future under his administration. On Sunday, Donald Trump Jr. posted on X (formerly Twitter), calling the $TRUMP coin “the hottest digital meme on earth” and declaring WLF “the future of finance.”
“We are just getting started,” he added.