'A mockery': Trump's new meme-coin sparks anger in crypto world
An image for the Trump coin on its website
An image for the Trump coin on its website [BBC]

US President Donald Trump has been criticised for launching a meme-coin while saying he "doesn't know much" about the cryptocurrency.

The digital coin called TRUMP appeared on his social media accounts ahead of his inauguration on Monday and quickly became one of the most valuable crypto coins. The value of a single coin shot up to $75 within a day, but since has fallen to $39.

But the launch of the so-called meme-coin - a cryptocurrency with no utility other than for fun or speculation - has been widely criticised by industry insiders.

"Trump's comments about not knowing much about the coin back up my opinion that he is making a mockery of the industry. It's a stunt," says Danny Scott, CEO of CoinCorner.

The latest dip in value came after Trump told reporters: "I don't know much about it other than I launched it, other than it was very successful."

When he was told his coin raised several billion dollars for him, he played it down saying "several billion - that's peanuts for these guys" pointing to tech billionaires assembled for a press conference about AI.

Meme-coins are often used by speculators to make money or to allow fans to show support to a celebrity or moment in internet culture.

It's not the first time Trump has sold crypto products. He made millions from launching a series of NFTs of him in various superhero poses in 2022.

Some industry analysts say the president having his own meme coin is a sign that others should follow.

"TRUMP token just signaled to every company, municipality, university & individual brand that crypto can now be used as a capital formation and customer bootstrapping mechanism," Jeff Dorman from investing firm Arca posted online.

However, the overall sentiment seems to be negative towards the president's meme coin.

Many in the crypto world are waiting for Trump to back up campaign promises to help boost the industry in the US. People like Danny Scott hope to see focused plans, particularly around Bitcoin, from the administration.

On Thursday the president took a first step towards fulfilling those promises by signing an Executive Order to set up a working group to explore changes to crypto regulation and potentially create a national crypto stockpile.

Last year Trump promised Bitcoin fans he would make the US the "crypto capital of the planet". A few days into his term, the president has not issued executive orders involving cryptocurrency, nor has he mentioned it in his speeches.