Love Trump? Now You Can Buy His Meme Coin.

Summary

Podcast Summary: The Journal – "Love Trump? Now You Can Buy His Meme Coin"

Release Date: January 23, 2025
Host/Authors: Kate Linebaugh, Ryan Knutson, with Jessica Mendoza
Production: The Wall Street Journal & Gimlet, Spotify co-production

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1. Introduction

In the January 23, 2025 episode of The Journal, hosts Kate Linebaugh and Ryan Knutson, alongside Jessica Mendoza, delve into a groundbreaking event in the cryptocurrency world: the launch of former President Donald Trump's own meme coin. This comprehensive summary captures the key discussions, insights, and conclusions drawn from the episode.

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2. The Crypto Ball and Trump's Crypto Embrace

Crypto Industry's Biggest Bash

The episode opens with Kate Linebaugh recounting the grand Crypto Ball held in Washington D.C. the Friday before the inauguration. This event was a convergence of high-profile figures from the crypto industry and political spheres.

Vicky Huang (00:21): "Everyone. A lot of the most high-profile people in crypto were there, such as Coinbase CEO Brian Armstrong, the co-founders of crypto Exchange Gemini, the Winklevoss brothers, and some of the most high-profile political figures."

Celebrating Trump's Inauguration and Crypto Synergy

The Crypto Ball wasn't just a celebration of Trump's inauguration but also a testament to his growing support within the crypto community. Trump had pledged industry-friendly regulations and the establishment of a national bitcoin reserve, earning him accolades from crypto leaders.

David Sachs (01:46): "The reign of terror against crypto is over and the beginning of innovation in America for crypto has just begun."

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3. Launch of Trump's Meme Coin

A Surprising Move

Amidst the celebrations, President Elect Trump made a surprising announcement by launching his own cryptocurrency, a move that stirred significant attention and controversy within the crypto community.

Kate Linebaugh (02:09): "So at 9pm, President Trump posted on his social media platform, Truth Social that he was launching a cryptocurrency."

What Is a Meme Coin?

The hosts explain that Trump's coin falls under the category of "meme coins," which are typically created for entertainment and based on popular internet memes.

Vicky Huang (03:51): "A meme coin is a type of cryptocurrency that's essentially built to generate a few laughs. It's usually based on a meme, such as a phrase, an image, like little... "

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4. Market Reaction and Trader Behavior

Rapid Surge in Value

Trump's meme coin, trading under the ticker "TRUMP," saw an explosive increase in its value shortly after launch, reaching a market cap of nearly $15 billion by Sunday.

Kate Linebaugh (07:01): "The price of the token immediately soared. In the first hours of trading, one Trump coin could go for $7, $10, and then $20. But as more people jumped in, the price climbed even higher, to $30, $40, then $70."

Trader Enthusiasm and Profit Motives

Many traders flocked to the Trump coin, viewing it as a lucrative opportunity for quick profits.

Vicky Huang (07:36): "A lot of traders rush into the Trump coin because they see a once in a lifetime opportunity to make money. ... they've been able to make a really quick big gain within just a few hours."

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5. Melania Trump's Token and Its Impact

Introduction of Melania's Coin

In an unexpected twist, Melania Trump launched her own meme coin, "Melania," on the same platform.

Vicky Huang (09:14): "The incoming first lady also announced her coin on Truth Social. She posted, 'you can buy Melania now.'"

Effect on Trump's Coin

The introduction of Melania's token led to a significant drop in the value of Trump's coin.

Kate Linebaugh (09:44): "The launch of her coin caused his coin to crash."

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6. Industry and Community Reactions

Mixed Reactions from Crypto Enthusiasts

The community's response was polarized. While some praised the move for bringing attention and energy to cryptocurrencies, others criticized it as speculative and potentially harmful.

Dave Portnoy (07:36): "I made a quick millie and then said I loved Trump's America."

Criticism from Crypto Skeptics

Skeptics labeled the coins as scams and expressed concerns about their legitimacy and the motives behind their creation.

Vicky Huang (10:10): "Crypto skeptics called the coins a scam, and others worried that people might buy tokens as a way of currying favor with Trump."

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7. Criticisms and Concerns

Potential for Fraud and "Rug Pulls"

The episode highlights fears surrounding the possibility of a "rug pull," where creators hype a coin only to sell off their holdings, causing the coin's value to plummet.

Vicky Huang (14:08): "A lot of critics of the coins think that the tokens have characteristics of a rug pull."

Insider Control as a Red Flag

With 80% of Trump coins controlled by entities linked to him, concerns were raised about the potential for market manipulation.

Vicky Huang (14:53): "Having insider ownership is a red flag because it means that the insiders will be able to sell lots of tokens and crash or collapse the price of the token in a very quick period of time."

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8. Potential for Rug Pull and Token Structure

Structural Safeguards Against Immediate Sell-Offs

Despite concerns, the Trump coin's structure imposes restrictions on the sale of tokens, with 800 million tokens scheduled for release over three years, mitigating the risk of an immediate rug pull.

Vicky Huang (15:01): "Only 200 million have been released since the token launched on Friday. And the rest of the 800 million tokens will be released over three years."

Implications for Token Stability

This phased release suggests that the Trump coin might not adhere to the typical rug pull model, as immediate liquidation is prevented.

Vicky Huang (15:34): "Yes, that's a sign that it might not be a rug pull."

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9. Reflections on the Crypto Industry's Division

Tension Between Builders and Speculators

The episode underscores a fundamental tension within the crypto community: serious developers and investors striving for legitimacy versus speculative traders seeking quick gains.

Vicky Huang (15:52): "It reflects this tension between two sides of crypto. On one side, there are these serious builders, executives, and investors who ardently hope that crypto will be seen as a real important industry that's driving innovation in America. On the other side, there are these fast money traders. They want numbers to go up and tokens to trade based on speculation, hype, and excitement."

Trump's Position Amidst the Divide

Trump occupies a unique space, appealing to both the substantial investors and the speculative traders, thereby bridging the two factions.

Vicky Huang (16:32): "Trump is kind of in the middle of it all. On the one hand, he's courted the money and votes of deep-pocketed crypto investors and executives. On the other hand, he's beloved by these crypto traders who are overjoyed about his pledges to make us the crypto capital of the planet that has caused token prices to skyrocket."

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10. Future Outlook

Uncertain Trajectory for Crypto

The episode concludes with a cautious outlook on the future of cryptocurrencies, suggesting that the next four years may be volatile and filled with unexpected developments.

Vicky Huang (17:11): "It signals that the next four years is going to be quite tumultuous, that it might not be the golden age for digital assets or crypto renaissance that a lot of people in the industry had expected the next four years to be. That it might be a lot of ups and downs and a lot of unexpected events."

Ongoing Surprises and Developments

The crypto industry is anticipated to face more surprises, indicating that its evolution will continue to be dynamic and unpredictable.

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Conclusion

The episode of The Journal unpacks the intricate and multifaceted implications of Donald Trump's entry into the cryptocurrency arena with his own meme coin. While it brings substantial attention and potential financial gains, it also raises significant concerns about market manipulation, legitimacy, and the future stability of crypto as a mainstream financial asset. As the crypto industry grapples with these developments, the episode suggests that the path ahead will be fraught with challenges and unforeseen events.

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For more insights and detailed reporting, listen to the full episode of "Love Trump? Now You Can Buy His Meme Coin" on Spotify or The Wall Street Journal platforms.

Transcript

[Kate Linebaugh]

The Friday before inauguration, the crypto industry convened in D.C. for a party. They called it the Crypto Ball. Our colleague Vicky Huang talked to some of the attendees. Who was there?

[Vicky Huang]

Everyone. A lot of the most high profile people in crypto were there, such as Coinbase CEO Brian Armstrong, the co founders of crypto Exchange, Gemini, the Winklevoss brothers, and some of the most high profile political figures.

[Kate Linebaugh]

Trump's pick for Treasury Secretary was there. So was the speaker of the House. Guests noshed on beef tenderloin and tuna tartare. They snapped up free swag like make bitcoin great again. Hats and Trump style golden slippers. Snoop Dogg performed. What were they celebrating?

[Vicky Huang]

They were celebrating the inauguration of President Trump. But beyond that, it was more about how President Trump has become the crypto industry's biggest cheerleader on the campaign trail.

[Kate Linebaugh]

Trump embraced crypto. He promised industry friendly regulations and pledged to start a national bitcoin reserve. And the crypto industry is embrace Trump right back, channeling contributions to him and other crypto friendly candidates. Now at the Crypto Ball, it seemed like all that effort and cash was about to pay off. Here's Trump's crypto czar, David Sachs on stage.

[David Sachs]

The reign of terror against crypto is over and the beginning of innovation in America for crypto has just begun.

[Kate Linebaugh]

But while they were partying, Trump, the champion of the crypto industry, was making a surprise move.

[Vicky Huang]

So at 9pm, President Trump posted on his social media platform, Truth Social that he was launching a cryptocurrency.

[Kate Linebaugh]

The President Elect had just launched his own coin, and this move would roil the crypto community. Welcome to the Journal, our show about money, business and power. I'm Kate LINEBAUGH. It's Thursday, January 23rd. Coming up on the show, why Trump's cryptocurrency has shaken the crypto world.

[David Sachs]

This episode is brought to you by Workday. Get the whole band together with Workday and pair finance and HR on one platform for an epic performance. With Workday AI at the core, you'll make confident decisions faster than ever. And you'll drive flawless business and finance operations with an agile platform that constantly evolves. To future proof your organization. Be a Finance and HR Rockstar with Workday. Visit workday.com to learn more.

[Kate Linebaugh]

The COIN that Trump launched last Friday wasn't just any kind of cryptocurrency. It's what's known in the crypto community as a meme coin. What is a meme coin?

[Vicky Huang]

A meme coin is a type of cryptocurrency that that essentially built to generate a few laughs. It's usually based on a meme, such as a phrase, an image, like little.

[Kate Linebaugh]

Like viral Internet thingamajiggers, nuggets.

[Vicky Huang]

Yes.

[Kate Linebaugh]

How many of these meme coins have you seen? In the past few years, there have.

[Vicky Huang]

Been millions of meme coins created.

[Kate Linebaugh]

According to Vicky, the most popular, usually featured dogs.

[Vicky Huang]

And that's no surprise, because the first and most successful meme coin is dogecoin, a shiba inu themed cryptocurrency that was started out as a joke, but took off after it received a lot of endorsement from the billionaire entrepreneur Elon Musk.

[Kate Linebaugh]

In its heyday in 2021, Dogecoin was worth over $80 billion. Unsurprisingly, it spawned many imitators.

[Vicky Huang]

So as a result, you have shiba inu coin, you have baby dogecoin, you have dog with hat coin, which is based on meme of a doge wearing a pink beanie.

[Kate Linebaugh]

And as a serious reporter for the Wall Street Journal, you're covering these things.

[Vicky Huang]

It's a fun job.

[Kate Linebaugh]

How do you make one of these coins?

[Vicky Huang]

They have become extremely easy to create. Say if you want to create a meme coin, you can go onto one of these platforms, websites, and you click a button and they ask you to put in the names, the ticker, some other basic information, and then you pay a fee, and then your meme coin is created within minutes.

[Kate Linebaugh]

Because they're so popular and easy to make, meme coins have also become a vehicle for scams. One of these scams is sometimes called a rug pull. Basically, someone launches a new coin, they hype it up, convince other people to buy it, and then they sell, raking in the profits and tanking the coin price for everyone else. All of which is to say, meme coins don't have the greatest reputation. Okay, so tell us about this coin that Trump launched last Friday. The night of the crypto ball.

[Vicky Huang]

So the night of the crypto ball, trumped launched a meme coin that trades under the ticker Trump. And the meme itself is a picture of President Trump with his fist in the air with the words five five, five in the background.

[Kate Linebaugh]

Trump announced the launch on his truth social platform. He posted, quote, get your Trump now.

[Vicky Huang]

The price of the token immediately soared.

[Kate Linebaugh]

In the first hours of trading, one Trump coin could go for 7, 10, and then $20. But as more people jumped in, the price climbed even higher, to 30, 40, then $70. On Sunday, the Trump coin had an almost $15 billion market cap. For the people who bought this coin, why did they do it? Why did they think it was a good move? I thought these kinds of coins are jokes.

[Vicky Huang]

A lot of traders rush into the Trump coin because they see a once in a lifetime opportunity to make money. And a lot of them did. If we look at social media, a lot of traders who put in money even on Saturday, hours after Trump launched the token and sold on Sunday, they've been able to make a really quick big gain within just a few hours.

[Kate Linebaugh]

What did the surging price of this coin mean for Trump himself?

[Vicky Huang]

So the hot take is that for President Trump, this means that he's now one of the biggest crypto billionaires.

[Kate Linebaugh]

Trump is now a crypto billionaire because entities associated with him own 80% of the supply of Trump coins.

[Vicky Huang]

The organizations behind the coins are CIC Digital, which is an affiliate of the Trump Organization, and Fight Fight Fight Lock, which is co owned by CSC Digital.

[Kate Linebaugh]

But Trump's ballooning crypto wealth was about to receive a hit and from an unlikely source, his wife, Melania Trump.

[Vicky Huang]

On Sunday afternoon, the first lady launched her own cryptocurrency, her own meme coin.

[Kate Linebaugh]

The incoming first lady also announced her coin on Truth Social. She posted, quote, you can buy Melania now.

[Vicky Huang]

And the meme of her is a picture of her smiling while clasping her hand in a prayer position. Manania's token soon soared in value as well. However, this caused a crash of almost 50% in the Trump token.

[Kate Linebaugh]

Wait, wait a second. Her stock goes up, so his goes down?

[Vicky Huang]

Yes.

[Kate Linebaugh]

I say stock, but I mean coin. Her coin goes up so his goes down?

[Vicky Huang]

Yes. The launch of her coin caused his coin to crash.

[Kate Linebaugh]

Why is that? Because they like Melania more?

[Vicky Huang]

I don't think so. I think they like any new opportunity to make money on the newest, hottest thing.

[Kate Linebaugh]

The problem, according to traders Vicky talked to, was that the buyers for Trump's coin and Melania's coin overlapped. The same people who were looking to make a quick buck on Trump's coin now wanted Melania's token.

[Vicky Huang]

Traders basically had to sell the Trump tokens in order to buy the newest coin because they see this upside of making profits.

[Kate Linebaugh]

Some crypto fans applauded Trump's decision to release a coin, saying it brought energy, attention and new users to digital currencies. Others just bragged on X about their gains, like media entrepreneur Dave Portnoy. He said he made, quote, a quick millie and then said he loved Trump's America. But the Trump and Melania coins also generated plenty of criticism. Crypto skeptics called the coins a scam, and others worried that people might buy tokens as a way of currying favor with Trump. Has Trump responded to these concerns?

[Vicky Huang]

Trump hasn't responded to these concerns, and the Trump Organization hasn't responded or made any statements.

[Kate Linebaugh]

At a press conference with the president Tuesday, a reporter referred to the launch of Trump's coin. Do you intend to continue selling products that benefit yourself personally while you're president?

[Donald Trump]

Well, I don't know if it benefited. I don't know where it is. I don't know much about it other than I launched it, I heard it was very successful. I haven't checked it. Where is it today?

[Kate Linebaugh]

But Trump's coin has done more than fire up the usual critics. It's also drawn criticism from within the crypto community. That's next. The release of the Trump meme coin blindsided people in the crypto industry who've been working hard to repair crypto's reputation.

[Vicky Huang]

Ever since the collapse of the crypto exchange ftx, the industry's reputation has been tarnished. It has been seen as this industry that's rife with fraud and scams and all kinds of scandals. However, especially over the past year, the industry has really been working hard to rebuild its image and it has made a lot of progress on that front.

[Kate Linebaugh]

Crypto is increasingly going mainstream. Major Wall street firms now offer crypto funds. Crypto friendly legislators won big in November's election, and in December, the price of Bitcoin hit $100,000 for the first time.

[Vicky Huang]

They feel like they have finally arrived at this moment where crypto could be taken seriously. And then you have the soon to be President of the United States launching a cryptocurrency that's known for its speculative nature, extreme volatility, and high risks. It's kind of like proving to the world that crypto is speculation. Crypto is nothing more than speculation. It is a sort of boom and bust investment meme.

[Kate Linebaugh]

Coins have such a dodgy reputation that when Trump first posted about his new coin, many in the crypto community assumed it was a scam and his accounts had been hacked. When it became clear that the coin launch was real, some in the industry raised concerns that it was a rug pull, that the Trump entities behind the coin could cash out, tanking the coin price for everyone else.

[Vicky Huang]

A lot of critics of the coins think that the tokens have characteristics of a rug pull. So one characteristics that worry a lot of crypto watchers is that The Trump tokens, 80% of it, are controlled by insiders. The Organizations related to the Trump Organization. Having insider ownership is a red flag because it means that the insiders will be able to sell lots of tokens and crash or collapse the price of the token in a very quick period of time.

[Kate Linebaugh]

On the other hand, Vicky says cashing out would be tricky in practice because of how the Trump meme coin is structured.

[Vicky Huang]

The one stipulation on the website associated with the Trump coin is that in total, there are 1 billion Trump coins in existence, but only 200 million have been released since the token launched on Friday. And the rest of the 800 million tokens will be released over three years. So Trump can't just sell all the tokens immediately.

[Kate Linebaugh]

They need to be sold over the course of three years.

[Vicky Huang]

Yes.

[Kate Linebaugh]

So that's a sign that it might not be a rug pull?

[Vicky Huang]

Yes, that's a sign that it might not be a rug pull.

[Kate Linebaugh]

What does this whole coin drama tell you about the crypto industry?

[Vicky Huang]

It reflects this tension between two sides of crypto. On one side, there are these serious builders, executives and investors who ardently hope that crypto will be seen as a real important industry that's driving innovation in America. On the other side, there are these fast money traders. They want numbers to go up and tokens to trade based on speculation, hype and excitement.

[Kate Linebaugh]

The tension between the gamblers and the suits.

[Vicky Huang]

Yes, that's a really good way to sum it up.

[Kate Linebaugh]

Which side is Trump on?

[Vicky Huang]

Trump is kind of in the middle of it all. On the one hand, he's courted the money and votes of deep pocketed crypto investors and executives. On the other hand, he's beloved by these crypto traders who are overjoyed about his pledges to make us the crypto capital of the planet that has caused token prices to skyrocket.

[Kate Linebaugh]

What do you think it signals about what the next four years are going.

[Vicky Huang]

To be like to a lot of people? It signals that the next four years is going to be quite tumultuous, that it might not be the golden age for digital assets or crypto renaissance that a lot of people in industry had expected the next four years to be. That it might be a lot of ups and downs and a lot of unexpected events. The crypto industry could be in for a lot more surprises.

[Kate Linebaugh]

As of Thursday afternoon, Melania's coin is worth about $470 million and Trump's coin about 7 billion. That's all for today. Thursday, January 20. The Journal is a co production of Spotify in the Wall Street Journal. Additional reporting in this episode by Caitlin Ostroff Audio in this episode from Rob Smith via storyful. Thanks for listening. See you tomorrow.