Trump Coin Surges, Generates $100M in Fees

The Trump coin, a cryptocurrency launched by entities associated with former President Donald Trump, has reportedly generated nearly $100 million in trading fees in less than two weeks, according to a Reuters report. Three blockchain analysis firms, including Merkle Science and Chainalysis, estimated that the token generated between $86 million and $100 million in trading fees by January 30.

The meme coin, known as $Trump, saw a rapid increase in value after its launch on January 17, reaching a peak market value of over $14.5 billion by January 19. However, its value has since dropped by two-thirds. The blockchain, a public ledger of all transactions involving $Trump, was analyzed by the firms for Reuters to estimate the trading fees generated.

CIC Digital, a company owned by Trump, is one of the entities behind the coin. Its official website states that CIC Digital will receive trading revenue from the meme coin's activities. However, the exact portion of fees that may have gone to Trump personally, or the ownership details of the other entities involved, remain unclear.

The $Trump coin was initially sold on Meteora, a relatively unknown cryptocurrency exchange. The creators of the coin receive a share of the trading fees from transactions on this platform. According to Chainalysis, at least fifty major investors have made profits exceeding $10 million each from the $Trump coin. Conversely, approximately 200,000 crypto wallets, primarily holding small amounts, have lost money on the exchange.

Eric Trump, speaking for the Trump Organization, expressed pride in their accomplishments in the cryptocurrency sphere, stating that $Trump is the "hottest digital meme on earth" and that they are "just getting started." The White House provided a fact sheet on Trump's executive order on digital financial technology in response to questions about the trading fees but did not address the fees directly.

Trump's pledge to become the "crypto president" and make the United States the "crypto capital of the planet" has been accompanied by criticism due to the large amounts of money involved and the opaque nature of these ventures. Critics, including Columbia University law professor Richard Briffault, have raised ethical concerns about Trump's ability to regulate his own business.

The ownership of Trump's meme coins is obscured behind limited liability companies