Washington, Jan 20 (V7N) — Newly inaugurated US President Donald Trump and First Lady Melania Trump have entered the cryptocurrency market with the launch of their own digital currencies, sparking a mix of excitement and controversy.

President Trump’s meme coin, named $Trump, was introduced by CIC Digital LLC, a company previously associated with Trump-branded merchandise. Meanwhile, Melania Trump launched her cryptocurrency, $Melania, on social media shortly after her husband’s announcement.

Within hours of its release, $Trump achieved a staggering market cap of $5.5 billion, while $Melania reached $1.3 billion, according to CoinMarketCap.com. Combined, the cryptocurrencies now hold a total market value of $8.7 billion. Despite their meteoric rise, both tokens have been marked by transaction volatility.

Meme coins like $Trump are often tied to internet trends and lack intrinsic value, making them a highly speculative investment. Critics have warned about the risks associated with such tokens, noting their tendency to inflate rapidly before collapsing.

The launch comes as a surprise given Trump’s prior criticism of cryptocurrencies, which he once labelled a "scam." Despite this, the website for $Trump states that 200 million tokens have already been issued, with plans to release an additional 800 million over the next three years. The site clarifies that the coin is neither an investment opportunity nor linked to any political campaign or government entity.

Critics accuse Trump of leveraging his presidency for financial gain. Nick Tomaino, a prominent crypto venture capitalist, described the initiative as “fraudulent” and harmful to late investors. “Launching this just hours before taking office, with 80% ownership, is a clear conflict of interest,” he wrote.

Such ventures often create initial market buzz, driving up prices, only for late-stage investors to face significant losses.

Despite skepticism, some cryptocurrency investors are optimistic that the Trump administration could foster a favourable regulatory environment for the industry.

As the market grapples with the implications of these launches, the world watches to see whether the Trump-branded cryptocurrencies are a fleeting trend or a lasting phenomenon.

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