Convicted felon and former US President Donald Trump is rumored to be entering the cryptocurrency market with the launch of an official token named DJT on the Solana blockchain. The news broke via a tweet from Pirate Wires, with Mike Solana, the editor of the outlet, stating that Barron Trump is spearheading the initiative. However, Solana clarified that he did not speak directly with Trump and acknowledged the potential for Trump to pivot or deny the report​.

The DJT token, colloquially called Trump Coin, aims to represent a new era for currency and tokenization. According to the official website, the token is pegged 1:1 with the U.S. dollar and backed by collateral in Solana. The initiative is presented as a way to empower grassroots participation in the democratic process while maintaining legal and ethical standards​.

Despite these claims, skepticism abounds. Bubblemaps, a blockchain analysis firm, pointed out that 67% of the token’s supply is concentrated in one cluster, raising concerns about centralization and the potential for manipulation​. This has fueled doubts about the legitimacy of the token being genuinely affiliated with Trump.

The Trump campaign has recently embraced cryptocurrencies, allowing donations in various digital assets such as Bitcoin, Ethereum, and Dogecoin. This move aligns with Trump’s broader strategy to engage tech-savvy supporters and diversify fundraising channels ahead of the 2024 presidential election​.

DJT is the stock symbol of Trump’s social media platform Truth Social. The stock itself has been a meme stock favorite since going public in March, with shares of DJT trading as high as $79.38.

Like meme stocks, meme tokens are inspired by extraneous factors such as internet trends and pop culture references. Although some of the most famous meme coins, like Dogecoin and Shiba Inu, were originally created as a joke, their popularity and cult-like followings have accelerated the total meme coin market cap to a staggering $50 billion.

By launching on the Solana blockchain, Trump Coin will join the ranks of other popular Solana-based meme coin projects like “Dogwifhat,” a token associated with a meme of a dog wearing a pink knitted hat; “Jeo Boden,” a satirical cartoon of US President Joe Biden; and “Mother Iggy,” a meme coin launched last month by Australian rapper Iggy Azalea.

According to blockchain explorer SolScan, the token began trading on Solana with the market cap currently sitting at $73 million​.

Former GOP presidential candidate and adviser to Trump, Vivek Ramaswamy, expressed support for Trump’s venture into crypto, stating, “I’m glad President Trump and his campaign are leaning into crypto, including accepting it – he’s ahead of the curve. Embracing crypto will help Trump continue to bring libertarians and your not-typical Republicans into the fold – it’s a winning issue.”

Trump Coin is the latest of a handful of meme coins inspired by political candidates this election cycle. Other nonaffiliated Trump meme tokens are trading in the crypto landscape, including a token trading under the symbol MAGA, his “Make America Great Again” slogan with a cartoon of Trump and an American flag in the background.

“MAGA” coin, which operates under the ticker TRUMP, is currently the most popular political meme coin, trading at just over $9 with a market cap of over $400 million. The price of the token dropped on the news of the launch of Trump Coin​.

Another Trump-inspired meme coin trades under the letters TROG; it accompanies a cartoon of a frog wearing a MAGA hat. Much smaller in comparison to MAGA, it has a market cap of $7.38 million and also fell on the news of the Trump Coin launch.

Neither MAGA nor TROG are affiliated with Trump, his various business ventures nor his 2024 presidential campaign directly. However, according to blockchain research firm Arkham Intelligence, the former president owns a substantial number of MAGA and TROG tokens, which he was gifted by the token creator. Trump, himself, is hardly a crypto enthusiast but he has tapped into the industry as a potential source of voters as the November elections near​.

The crypto vote could be pivotal in the coming presidential election. Many industry participants regard themselves as single-issue voters, meaning they will vote solely based on which candidate they think is the most crypto-friendly, regardless of their other political views. Trump is targeting those voters with the help of some of his advisers, including Ramaswamy, an entrepreneur and crypto enthusiast who has been advising Trump on digital asset policy​.

This follows a scam last year related to Trump called “Trump Bucks.” This scheme promised supporters a get-rich-quick opportunity if Trump wins the 2024 election. Promoted through various websites, “Trump Bucks” falsely claimed to offer substantial returns on investment. Many of these sites have been shut down following reports of significant financial losses by investors.

Trump was recently convicted on 34 felony counts, including falsifying business records. This historic verdict, marking the first time a former president has been convicted of a felony, has further polarized public opinion. Some of Trump’s supporters view the conviction as a political attack, while others see it as a reaffirmation of the rule that no one is above the law.

Information for this story was found via Fox News, Crypto Times, Blockworks, and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.