President Trump Is A Crypto Billionaire Thanks To His Meme Coin. So What Exactly Is A Meme Coin, Anyway?

When President Donald Trump launched his meme coin (also spelled memecoin), $TRUMP, connected Friday, it soared successful worthy from $8 to a precocious of astir $75 by Sunday. As of this writing, it has dropped down to astir $40, according to CoinMarketCap.

Still, Axios reports that nan play surge earlier nan inauguration resulted successful Trump's crypto holdings being worthy $58 billion.

All of this whitethorn personification you asking, "What precisely is simply a meme coin?" We turned to nan experts astatine Coinbase for nan answer.

In short, a meme coin is simply a type of cryptocurrency that is inspired by a colorful personality, a salient celebrated civilization moment, aliases a trend. "They are typically supported by enthusiastic online communities and are mostly intended to beryllium light-hearted and fun," writes Coinbase.

Related: Donald Trump's Meme Coin $TRUMP Surges to $10.7 Billion

The $TRUMP's website, GetTrumpMemes.com, features akin messaging: "Celebrate Our Win & Have Fun!" sounds 1 banner. And a disclaimer adds that nan coin is "not intended to be, aliases to beryllium nan taxable of, an finance opportunity, finance contract, aliases accusation of immoderate type."

Memecoins, for illustration each cryptocurrencies, usage blockchain to measurement their virtual assets, overmuch for illustration a bank's equilibrium expanse aliases ledger. Nearly each cryptocurrencies are not issued aliases controlled by immoderate authorities aliases different cardinal authority, says Coinbase, and warns that are very unpredictable and volatile. "Engaging pinch meme coins carries consequence and is point you should only effort equipped pinch investigation and experience."

Coinledger explains: "Unlike accepted currencies, cryptocurrencies aren't backed by beingness assets aliases authorities promises. Instead, their worth is afloat wished by proviso and demand."

Per Axios's reporting, 200 cardinal of nan 1 cardinal afloat $TRUMP coins are being traded. The remaining coins will beryllium tin to beryllium sold complete nan adjacent 3 years, starting successful April.

Trump's meme coin is branded pinch an image of him president raising his fist pinch nan words, "FIGHT FIGHT FIGHT." First Lady Melania Trump launched a memecoin arsenic well, MELANIA, which Axios reports very quickly achieved a marketplace capitalization "north of $5 billion." Her branding features an image of her smiling pinch her hands folded successful beforehand of her.

If this each still sounds baffling, it is because it is. Even Coinbase admits, "If you find distinguishing betwixt meme coins, scams, and cryptocurrency confusing, you're not alone. It's captious to understand nan risks to thief you debar unexpected volatility and losses."