President-elect Trump launched his own cryptocurrency overnight and swiftly appeared to make more than $25 billion on paper for himself and his companies.
Why it matters: The stunning launch of $TRUMP caught the entire industry off-guard, and speaks to both his personal influence and the ascendancy of cryptocurrency in his administration.
- It also speaks to the nature of the crypto industry that someone could have $25 billion worth of something that literally did not exist 24 hours previously.
Yes. Just seeing the words “market cap” should tell you something. It is a completely meaningless term when you are talking about crypto currency.
The price means somethings, the amount held means something. The entity that sold them can mean something. But market cap isn’t it.
To be fair, “market cap” is also a bullshit metric for stocks. The market price only ever represents the price of the currently traded stocks. Just dump 20% of the stock of any large company on the market and see how well their “market cap” lasts.