Trump-linked meme coin launch ahead of inauguration draws scrutiny and speculative frenzy

A meme coin promoted by Donald Trump was launched on the Solana blockchain on Friday, days before his inauguration. The token's market value rose to billions of dollars within a short time, making it one of the most talked-about launches in crypto.

A second token linked to Melania Trump followed over the weekend, and the price of the first coin dropped sharply as trading shifted.

Meme coins generally have no underlying business or cash flow. Their value depends largely on attention, community and speculation. Most of the supply of the Trump token is held by entities linked to the project, and those holdings are subject to a schedule of gradual unlocking. The launch has sparked criticism, including from some supporters of crypto. Concerns include:

• Potential conflicts of interest for a sitting president
• The risk of losses for retail buyers who bought near the peak
• The effect on efforts to present the industry as serious and regulated

Supporters describe the token as a form of fan engagement and a sign of the president's embrace of crypto.

The episode highlights how political brands, social media and meme coins have converged. It is likely to feature in debates about ethics rules and how digital assets should be regulated, as the new administration begins to set its crypto policy.