Trump crypto update: Trump's meme coin made nearly $100 million trading fees

Trump crypto update, President Donald Trump’s foray into the cryptocurrency space has garnered significant attention, particularly with the launch of his meme coin.

Exceeding Previous Estimates

Trump embraces meme coin cryptocurrency, recent estimates indicate that Trump’s meme coin has generated nearly $100 million, significantly surpassing earlier reports. This substantial revenue is attributed to the trading activities surrounding the coin.

CIC Digital's Role

One of the entities behind the meme coin is CIC Digital, a company owned by Trump. The official website for the $Trump coin states that CIC Digital will “receive trading revenue derived from trading activities” related to the coin. However, it remains unclear how much of these fees, if any, have personally benefited Trump or the ownership structure of the other entities involved.

Trading Revenue Insights
The creators of the meme coin earn a share of the trading fees from Meteora, a lesser-known crypto exchange where the $Trump coins were initially sold. According to Chainalysis, at least 50 of the largest investors in the coin have made profits exceeding $10 million each. In contrast, approximately 200,000 crypto wallets, mostly with smaller holdings, have reported losses on the exchange.

Family Involvement and Future Plans

Trump has committed to placing his assets in a trust managed by his children upon entering the White House. Eric Trump, representing the Trump Organization, expressed pride in their achievements in the crypto space, stating, “$Trump is currently the hottest digital meme on earth,” and added, “We are just getting started.”

White House Response

In response to inquiries from Reuters, the White House provided a fact sheet summarizing Trump’s executive order on digital financial technology but did not address questions regarding trading fees.

Ambitious Cryptocurrency Goals

Trump has declared his intention to become the first “crypto president” and aims to transform America into the “crypto capital of the planet” by revamping regulations and promoting digital asset ownership. Several key figures in his administration and networks have ties to the cryptocurrency industry.

Ethical Concerns Raised

The significant financial implications of Trump’s crypto ventures have raised ethical concerns among experts and political opponents. Richard Briffault, a law professor at Columbia University, noted, "There's an ethical concern that he has the power to regulate his own business."

Lack of Transparency

Details regarding the exact composition of Trump's wealth from this crypto business remain unclear, as ownership specifics are not publicly disclosed. Trump also has investments in two decentralized finance (DeFi) projects and a series of non-fungible tokens (NFTs).

Characteristics of Meme Coins

Meme coins, like Trump’s, are crypto tokens that often reference internet trends and are characterized by high volatility and limited practical use. Trump’s coin serves as a show of support for his campaign slogan, "fight, fight, fight," following an incident at a rally last year.

Ownership and Revenue Distribution

The ownership structure of Trump’s meme coins is obscured by limited liability companies. A Delaware-registered company, Fight Fight Fight, manages the official website for the coin. William Zanker, a Trump associate involved in digital assets, is listed as the primary contact. However, he has not responded to requests for comment.

The official $Trump website indicates that up to 1 billion coins will be sold over the next 36 months. Initially, 200 million coins were released, with the remaining 800 million owned by Fight Fight Fight and CIC Digital, estimated to be worth around $16 billion at current prices.

Trading Activity and Fees
The initial holders of the $Trump tokens received them from the creators without purchasing them. The trading of these tokens began on the Meteora exchange, where traders pay fees to the coin creators for providing liquidity.

Meteora allows creators to “mint a meme coin and earn fees for life,” and the exchange also collects fees. Between January 17 and January 30, the three wallets associated with the creators reportedly earned around $86 million in fees, with other estimates suggesting total earnings of about $100 million.

Conclusion

Trump’s meme coin has generated significant interest and revenue, highlighting the intersection of politics and cryptocurrency. As the situation evolves, the implications for both Trump and the broader crypto market remain to be seen.

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