Everything You Need to Know About Trump’s New Memecoin

A few days before his inauguration, Trump announced his new memecoin. This new memecoin was immediately listed on several exchanges, though some of the more popular ones, aka Coinbase, were skeptical about the political nature of the project.

So, what is Trump’s cryptocurrency all about? And should you buy it? We’ve got all the answers here, so keep reading.

What is $Trump Coin?

$Trump coin is a cryptocurrency created by CIC Digital, which is run by Donald Trump. The token is a memecoin built on the Ethereum blockchain. Trump himself says the memecoin was made to represent “what it means to never give up.”

Memecoins have risen in popularity in recent years because they can be a fun way to become a part of a viral trend. That being said, there is no value behind memecoins. They are a simple display of supply and demand, and they are incredibly risky to invest in as there is no guarantee you will see any of your money invested ever again.

Should You Buy $Trump Coin?

Normally, we do this at the end, but we absolutely recommend AGAINST purchasing $Trump coin. Although the token is run by Donald Trump, it has all the markings of a scam. It is an elaborate pump-and-dump scheme that was created to net the president more money.

Yes, you read that right. Memecoins are known for being scams, and this is one of the worst ones we’ve seen. CIC Digital, which is owned by Trump, created an initial 200 million tokens—but here’s the bad part: they kept 80%, or 160 million tokens, for themselves.

Although they plan to release more tokens in the future (a full 800 million from our understanding), we do not have faith that CIC Digital will divest lower than 80% until it comes time for the dump—and then investors will be left holding an empty bag.

For those who don’t know what a pump and dump scheme is, it is the creation of a token without a backing technology—much like Trump’s token—that is fun enough for people to buy it anyway because they want to be part of something. This is the pump phase. Then, once thousands of people have bought in and increased the price of the token to record highs, the creator of the token will “dump” or sell off all of their shares to make an easy profit. This “dump” will tank the price of the coin to record lows, leaving all those who invested who weren’t part of the scheme holding the bag.

Now, many people will argue that buying a memecoin like $Trump is for the purpose of supporting Trump. But here’s the truth—he doesn’t need your support. Trump is a billionaire and one of the wealthiest men in the United States…and he won’t be sharing any of that with you.

It is easy to let our emotions cloud our judgment, especially when it comes to investing in a political project like $Trump token—but trust us when we say you are better off watching this one from the sidelines.

If you don’t believe us, that is fine, but a simple google search of “pump and dump scheme” will reveal what is really going on here.

Are Memecoins Good?

In general, we have a hard time finding a place for memecoins within the cryptocurrency community. Sure, there are some decent projects, namely Dogecoin, but even though there are a few good projects, the space is so full of malicious actors we can’t find ourselves supporting one anytime soon.

Even Dogecoin, which is revered as one of the first memecoins, is often subject to its own pump-and-dump schemes orchestrated by Elon Musk.

Again, no matter what memecoin you invest in, you have to know that it is simply a view of the laws of supply and demand. You will likely make no profit because you are not in on the pump-and-dump scheme of the creators behind the token.

Yes, this sounds a bit cruel, but we’ve seen way too many memecoin projects go viral and then fail, leaving investors with nothing. Some of the prime examples include $Squid Game token, $MAGA, and Velo.

What to Do if You Already Purchased $Trump Token?

This article was written on the day the Trump token went live on Coinbase, despite their initial refusal to list the token, meaning it might be a bit late for some people. Hopefully, you found this article before the pump-and-dump scheme was enacted, and in that case, we recommend selling your shares immediately.

It’s critical to note that just because Coinbase lists a token doesn’t mean it is on the up and up. First and foremost, Coinbase is a business and they will list any project they can charge fees on (spoiler alert: that’s any token listen on their site). And although they claim to investigate projects thoroughly and delist those that may be scams, it is often too little too late as Coinbase doesn’t know a token is a scam until users have lost everything.

Either way, we hope you have time to get out, and fast.

Where Can You Buy Trump Memecoin?

If you don’t want to heed our warning and want to give the President of the United States (who receives a salary of over $400k per year) your money, then take a look at the following exchanges.

·      Coinbase

·      Bitget

·      KuCoin

·      Kraken

Just remember if you do decide to invest, just be prepared to lose every dollar you put in.

Overall, the $Trump token is a disaster waiting to happen. Especially if they do pump and dump during the president's time in the White House, which is why we believe this particular token will wait much longer before executing the dump part of the plan. Of course, we could be wrong, as we don’t have a crystal ball, but we recommend avoiding an investment in $Trump token as this project isn’t all that it says it is.