Trump's crypto token tops $10b market cap

Market gains additional popularity due to launch of TRUMP, MELANIA cryptocurrencies hours before inauguration

SINGAPORE/LONDON:

Donald Trump's newly created cryptocurrency soared on Monday to more than $10 billion in market value, drawing in billions in trading volume, while bitcoin's price hit a record-high hours ahead of the US president-elect's return to the White House.

Launched on Friday, Trump's "meme coin", also known as $TRUMP, soared from less than $10 on Saturday morning to as high as $74.59 before giving up some of its huge rise on Monday.

Trump launched the digital token with branding including an image from his attempted assassination in July, expanding his cryptocurrency interests that already include World Liberty Financial.

Melania Trump also launched her own coin, $MELANIA, on Sunday that rallied in price to take its market cap well beyond $1 billion.

Four-fifths of Trump coin's tokens are owned by CIC Digital, an affiliate of Trump's business, and another entity called Fight, Fight, Fight, according to its website. It says the coins are "an expression of support for, and engagement with, the ideals and beliefs embodied by the symbol '$TRUMP'" and are not an investment or security. The launch of the coins caused surprise and concern even among those in the cryptocurrency industry.

"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.

The Trump Organisation said this month the incoming president would hand over daily management of his multi-billion-dollar real estate, hotel, golf, media and licensing portfolio to his children when he entered the White House.

By 1345 GMT, Trump's coin was trading at $46.93, giving it a market cap of $9.4 billion, according to CoinMarketCap, which ranked it as the 19th biggest cryptocurrency.

Twenty-four-hour trading volume exceeded $41 billion, CoinMarketCap data showed.

The excitement over the so-called memecoins aided a wider rally in cryptocurrency prices as hopes grew among traders and investors that Trump would live up to his promise to act favourably towards the crypto industry.

Bitcoin hit an all-time high of $109,071.86 in early European trading before falling back to trade around $107,600. The world's largest cryptocurrency has surged more than 10% so far this month.