Summarize this content to 2000 words in 6 paragraphs President Trump, who has vowed to turn the U.S. into the cryptocurrency capital of the world, got a head start on those plans by debuting new his-and-her meme coins — the $Trump and $Melania coins — over the weekend. As of Monday afternoon, the day of Mr. Trump’s inauguration, the two digital currencies were worth a combined $9.5 billion. Meme coins, which have no economic or transactional value, are cryptocurrencies linked to internet trends, such as Dogecoin, which was inspired by the image of a shiba inu dog. Dogecoin became a favored cryptocurrency of billionaire Elon Musk, who even named his federal cost-cutting group, the Department of Government Efficiency, after it. Mr. Trump announced his cryptocurrency on Friday night, writing on social media that the coin celebrates “everything we stand for: WINNING!” The meme coin is being marketed with a picture of Trump holding a fist up superimposed over the words “FIGHT FIGHT FIGHT,” a reference to Trump’s response to an assassination attempt at a political rally in July.On Sunday, Melania Trump announced her own meme coin with a black-and-white photo of the First Lady smiling and with her hands clasped in front of her face, as if in thanks. The new meme coins are a way for Mr. Trump to leverage his online popularity, drawing his supporters to the project, noted Joe McCann, CEO of digital assets investment firm Asymmetric. The products, like Mr. Trump’s social media company, tend to attract individual investors, rather than large U.S. institutional firms, who buy shares as a way to show support for the president.
“Meme coins largely represent communities on the internet represented by a financial asset — they’re the tokenization of internet culture,” McCann told CBS MoneyWatch. “Donald Trump is arguably the most popular person on the internet, so by launching a meme coin, members of his community can further gain proximity to him.”Here’s what to know about the Trump coins.How much are the Donald and Melania Trump meme coins worth?As of Monday afternoon, the Trump meme coin had a market cap of $8.3 billion, while Melania Trump’s cryptocurrency was valued at $1.2 billion, according to CoinMarketCap. Mr. Trump’s meme coin soared after it debuted, hitting a peak of almost $75 each. But the price has shed about 45% of its value since then, settling at about $40 per coin on Monday afternoon. Still, that represents a surge of more than 400% from its initial price, CoinMarketCap data shows.
Melania Trump’s meme coin has had a slightly rockier debut, sinking more than 20% to about $5.40 per coin on Monday. Are $Trump and $Melania real investments? The Trump meme coin website says the president’s cryptocurrency is meant as an expression of support — not an investment opportunity. The Melania site describes the meme coins as “digital collectibles,” adding that they “are not intended to be, or to be the subject of, an investment opportunity, investment contract or security of any type.”Investors typically scrutinize balance sheets and income statements when deciding where to allocate their funds, while currency traders will examine economic factors like trade flow and GDP growth when placing their investments. But relying on these traditional measures don’t work with meme coins because they aren’t tied to an underlying asset or economy, experts note.”Attempting to use traditional financial models to value a meme coin will fail miserably,” McCann noted. “Business schools don’t teach students how to measure culture, virality or communities.”Are meme coins risky? Meme coins are a highly volatile corner of the crypto sector that often start as a joke and have no intrinsic value, although they can surge in price if enough people are willing to buy them. Because of those dynamics, their prices are prone sudden and extreme swings.”Meme coins are some of the most volatile assets on earth and should be treated with caution and care,” McCann said.
The site selling the $Trump coin warned buyers that its price “may be extremely volatile and you may experience substantial losses in connection with a sale or other disposition of Trump Memes.”Meme coins gained popularity in 2021 and 2022, but some inexperienced investors were unprepared for digital currencies’ extreme volatility, noted Nigel Green, CEO of wealth management firm deVere Group, in an email. As a result, he’s advising investors to be cautious before putting their money into the Trump meme coins.How can you buy the Trump and Melania meme coins? The meme coins are available to buy on an app called Moonshot, which allows people to buy meme coins with Apple Pay, credit or debit card, cryptocurrency, or payment apps like PayPal and Venmo. The Trump meme coin website notes that all transactions “ARE FINAL AND NON-REFUNDABLE. We shall have no responsibility or liability for any Trump Memes that are lost, misplaced or inaccessible.”What is the cryptocurrency industry’s view? Some crypto enthusiasts hailed the Trump meme coin’s release, saying it reflects the president’s support for an industry that felt unfairly targeted by the Biden administration. Mr. Trump has promised to usher in crypto-friendly regulations and picked crypto backers for key government positions.
6 moments from Trump’s second inaugural address
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For instance, Mr. Trump has nominated cryptocurrency supporter Paul Atkins to head the Securities and Exchange Commission, reinforcing optimism that the new president will deregulate the sector.Other cryptocurrencies are gaining in value on anticipation that the second Trump administration will benefit the sector. Bitcoin, for instance, soared more than 50% since the November election, surging to a record peak of $109,241 ahead of Mr. Trump’s inauguration ceremony.
The Associated Press
contributed to this report.
Aimee Picchi
Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.
