Donald Trump launches cryptocurrency a day before Inauguration – with a huge red flag

The release was wildly successful – but a major cause for concern was identified overnight – one that could prompt serious questions for the new President

Donald Trump launched his own cryptocurrency a day before becoming President again – and it has a huge red flag.

The US President elect launched $TRUMP – a so-called memecoin late on Friday night, prompting fans to pour hundreds of millions of dollars into snapping up the digital currency.

Crypto coins like $TRUMP allow supporters to use real money to buy ‘tokens’ – which only exist online, but can appreciate wildly in value.

But the market is incredibly volatile – leaving investors vulnerable to losing all their money in a matter of minutes.

It was wildly successful – smashing a $9 billion market cap within hours.

But a major cause for concern was identified overnight – one that could prompt serious questions for the new President.

Millions of dollars of ‘seed’ cash used to set up $TRUMP came from two currency exchanges – Gate and Binance – neither of which do business with US residents.

In March, Binance was accused by US authorities of breaking numerous US financial laws, including rules intended to thwart money laundering.

It will leave President Trump open to accusations of foreign interference just days before his inauguration.

The legal disclaimer on the coin is also pretty wild.

It reads that the coin is “NOT INTENDED TO BE, OR TO BE THE SUBJECT OF, AN INVESTMENT OPPORTUNITY, INVESTMENT CONTRACT, OR SECURITY OF ANY TYPE”.

And it also effectively bans the buyer from being involved in a class action lawsuit against the Trump Organisation’s crypto arm, CIC Digital LLC.