Most recent update: [January 18, 2025]
What is TRUMP?
US President Donald Trump launched his own memecoin Official Trump ($TRUMP) on the Solana blockchain at 9 AM ET on Friday, 17 Jan 2024. According to Coingecko, $TRUMP rose up more than 600% overnight after launch and as of 11 a.m. ET on Saturday, $TRUMP was trading slightly over $32, resulting in a fully diluted market capitalisation of about $32 billion.
Trump introduced this memecoin on Friday night while holding a "Crypto Ball" in Washington. According to his website, it is "the only official Trump meme." Although other Trump-branded meme coins have surfaced in recent months, none of them had received his formal support.
Who is behind TRUMP?
The project was organised by CIC Digital LLC, a Trump Organisation affiliate that has experience selling shoes and fragrances bearing the Trump name. Eighty percent of the tokens are owned by CIC Digital LLC and Fight Fight Fight LLC, a Delaware-based business that was established earlier this month.
How does it work?
Trump memes are not meant to represent an investment opportunity, investment contract, or security of any kind; rather, they are meant to serve as a means of expressing support for and engagement with the values and views embodied by the sign "$TRUMP" and the related artwork. It is a purely speculative asset.
The TRUMP Token and Tokenomics
There are a total of 1 billion $TRUMP tokens. 200 million $TRUMP are available for circulation since day one and will grow to a total of 1 billion $TRUMP over three years. According to the website, eighty percent the of the tokens are subject to a 36-month vesting schedule to creators and CIC Digital, an associate of The Trump Organisation.
The value of TRUMP is largely dependent on the sentiment of the community and speculative interest.
Security
TRUMP is an SPL token, which is the standard format for fungible tokens on the Solana blockchain. The security of TRUMP is subject to the Solana blockchain infrastructure.
Drawbacks and risks
Engaging in Official Trump (TRUMP) carries inherent uncertainties and challenges, predominantly due to the extreme volatility characteristics of memecoins within the volatile crypto landscape. TRUMP has shown propensity for sharp value shifts, including a notable decline after its initial price surge, a pattern often seen in similar cryptocurrencies. Also, TRUMP’s performance is closely linked to the Solana ecosystem, making it susceptible to the ups and downs of Solana’s market performance. This interconnectedness underscores the need for potential investors to engage in comprehensive research and risk assessment keeping in mind the speculative and high-risk nature of memecoins investments.
Finally, as common to many Solana tokens and more broadly Proof-of-Stake networks, their blockchain architecture dictates that those with the most staked tokens will have the most sway in the network’s functioning. This effectively places richer wallets in a position of power. Thus, if one person or a group of entities can acquire 50% of the network’s voting power, they would be able to control it.
Due Diligence
Before listing TRUMP on the VirgoCX Platform, VirgoCX performed due diligence on TRUMP and determined that TRUMP is unlikely to be a security or derivative under Canadian securities legislation. VirgoCX’s analysis includes reviewing publicly available information on the following:
- The creation, governance, and location of TRUMP and/or its primary development team;
- The supply, demand, maturity and liquidity of TRUMP; and
- Legal and regulatory risks associated with TRUMP.
Statutory Rights under Securities Legislation
VirgoCX is offering Crypto Contracts on crypto assets in reliance on a prospectus exemption contained in the exemptive relief decision Re VirgoCX Inc. dated May 30th 2024 (the Decision). Please be aware that the statutory rights in section 130.1 of the Securities Act (Ontario) and, if applicable, similar statutory rights under the securities legislation of each other province and territory in Canada do not apply in respect of the Crypto Fact Sheet to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.
Further Reading
To learn more about TRUMP, check out these in-depth resources here:
- The official site of TRUMP
- Coinmarketcap’s overview of TRUMP
- Coingecko’s overview of TRUMP
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