In just two weeks
$Trump coin generates 100 million dollars in trading fees
The companies behind US President Donald Trump's cryptocurrency have raked in trading fees of almost 100 million dollars (97 million euros) in less than two weeks, according to analysts.
The meme coin "$TRump" had generated between 86 and 100 million dollars in trading fees by January 30, according to estimates by crypto data companies such as Merkle Science and Chainalysis. They analyzed the blockchain with all transactions involving $Trump for the news agency Reuters.
The digital coin was introduced by the President on January 17 and quickly gained in value. On January 19, the day before Trump's inauguration, it peaked at more than 14.5 billion dollars. Since then, the price has plummeted by two thirds. Tens of thousands of small investors have lost money in the process. Meme coins are considered to be digital collectible images whose value is determined by supply and demand. Prices often fluctuate wildly and the coins have no practical use.
One of the companies behind the cryptocurrency is a Trump-owned company called CIC Digital. The official $Trump website states that CIC Digital will receive "trading proceeds from trading activities". It is not possible to determine whether any or how much money from the fees has flowed to Trump personally. It is also unclear who the owners of the other companies behind the meme coin are.
Around 200,000 losers
Its creators receive a share of the trading fees from Meteora, a little-known crypto exchange on which $Trump was first sold, as the blockchain analyses show. At least 50 of the largest investors have each made more than 10 million dollars profit with the Trump coin, according to Chainalysis. At the same time, around 200,000 crypto wallets, most with small holdings, lost money on the stock market with Trump dollars.
Trump has promised to put his fortune into a trust managed by his children after moving into the White House. His son Eric told Reuters in response to questions about the fees that he was proud of what "we continue to accomplish in the cryptocurrency space, $Trump is the hottest digital meme in the world right now." He added: "We're just getting started."
Donald Trump has promised to become the first "crypto president" and to encourage digital asset ownership - including through less regulation. Several key figures in his administration, his cabinet and his entourage own cryptocurrencies or have links to the crypto industry. Experts are critical of this. "There are ethical concerns that he practically has the power to regulate his own business," said Columbia University law professor Richard Briffault.
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