Trump Memecoin likely generated $11 million in fees
Trump’s namesake memecoin has likely generated at least $11.4 million in fees for entities linked to the president since its launch just before his second inauguration, according to an analysis by the crypto risk modeling firm Gauntlet.
The crypto world was caught by surprise when the “official” Trump memecoin was released late on Jan. 17 by the former crypto skeptic turned supporter. The ensuing exuberance swelled the market value of the token to more than $14 billion, spurring speculation that it could potentially earn billions for Trump, while also raising concern about conflicts of interest.
The memecoin was initially launched through the decentralized finance exchange Meteora on the Solana blockchain. The entities that sponsored it, CIC Digital LLC and Fight Fight Fight LLC, earn fees from the so-called liquidity they send to the platform to support trading of the memecoin, Tarun Chitra, the co-founder and chief executive of Gauntlet, said in an interview. Memecoins are a type of cryptocurrency that are typically unlinked to any underlying business and are highly speculative for investors while potentially wildly lucrative for founders.
DeFi exchanges use algorithms to determine asset prices and facilitate trades without
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