US President Donald Trump’s newly launched memecoin is a reminder of crypto’s riskiest gambles. What is a memecoin? How is it different from other cryptocurrencies? What makes them a risky investment?

An analysis of wallets showed 77% of TRUMP holders earned less than $100, with over 80% of TRUMP or MELANIA holders likely to be investors who held less than $1,000 worth of Solana-based assets.

Within hours, TRUMP skyrocketed in value, climbing from pennies to over $50, with a market cap over $10 billion. The coin now ranks among the world’s top 20 digital assets, attracting both investors and critics. Trump’s business arm holds 80% of the tokens, set to release gradually during his presidency.