TRUMP memecoin hits top 15 globally in 48 hours, sparking tax cut rumors.
Rumors are swirling that crypto-capitalist profits could be taxed less or completely exempt, given the uproar surrounding US President-elect Donald Trump's official memecoin, Official Trump (TRUMP).
The Solana-based token has overtaken major memecoins such as Pepe (PEPE), Shiba Inu (SHIB) and Dogecoin (DOGE), achieving a fully leveraged value (FDV) of $71 billion, according to CoinGecko. TRUMP is now the 15th-largest cryptocurrency by market value, reaching less than 48 hours.
Currently, cryptocurrency in the US is taxed as an asset, meaning any sale, trade or disposal of crypto is subject to capital gains tax.
Short-term capital gains on assets held for less than a year are taxed between 10% and 37%, depending on the individual's income. Depending on income levels, long-term capital gains on assets held for more than one year are taxed at 0% and 20%.
Speculation about crypto tax plans
Investors, crypto founders and community members believe that the success of the TRUMP token could affect tax reforms.
“Now that 80% of Trump's wealth suddenly consists of crypto, you can expect all federal income tax to end up on crypto sales this year. That's how the game is played,” wrote Mike Alfred, crypto investor and founder of Alpine Fox LP.
Anonymous businessman Gammichan shared similar thoughts about Trump's potential financial stimulus.
Source: Gamichan
Caitlin Long, CEO of Custodia Bank, pointed out that Trump's crypto ventures could have an impact on US tax policy.
“Trump now has a real incentive to change the crypto tax in the US. Meme-coining a US president-elect on inauguration weekend was not on my bingo card,” she says.
Related: How did Donald Trump interact with crypto during his first term?
The meteoric rise of the TRUMP token
Launched on January 17, just days before Trump's inauguration, the TRUMP token has caught the attention of the crypto community. The token surged 610% overnight from Friday to Saturday, trading at $68 at the time of writing.
“TRUMP's launch, hitting $72 billion in FDV, sent all the liquidity out of existing alts and into TRUMP, SOL and some others,” said Diane Crypto, an anonymous trader at X. SELL THEIR COINS TO BUY TRUMP. There is not enough liquid in this short period especially on weekends.
More than 80% of TRUMP's supply is owned by CIC Digital, the entity that owns the Trump Organization and Fight Fight Fight. These holdings are locked in a three-year opening program, preventing their immediate sale.
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