Peter Burns
Sat, Jul 12, 2025, 3:01 AM 5 min read
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Some people think there’s no better way to get rich quick than by risking your money on an unproven cryptocurrency. Many crypto projects boast stability and long-term returns, only to fall off a cliff shortly after launch, leaving small-time investors to pick up the pieces. However, on Jan. 18, two days before President Donald Trump was sworn in for his second term, a meme coin in his name launched, leading many to question if it was a scam.
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I posed five questions to ChatGPT to get the breakdown on $TRUMP and whether it’s a good idea for someone to invest in it. Because crypto can be a bit complicated for some, I asked ChatGPT to explain the answers as if I were a 12-year-old. This is how it responded.
ChatGPT said, “So, TRUMP cryptocurrency is a digital coin or token, like Bitcoin or Ethereum, but it’s named after Donald Trump, the former U.S. president. It’s not actually created or run by him, though. It’s made by a group of people who think it’s fun or interesting to have a cryptocurrency with the Trump name on it. This coin exists on the internet, and you can buy or trade it just like other cryptocurrencies.”
$TRUMP is a type of cryptocurrency known as a meme coin. Meme coins aren’t as serious as the major coins like Bitcoin, and many begin as a joke. These coins are often much more volatile, taking off or crashing in seconds.
Also, some groups like NPR dispute the fact that a group of people completely independent of President Trump created the coin, claiming he and his business partners coordinated the operation. However, after its launch, Trump and his sons publicly distanced themselves from any involvement.
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ChatGPT’s response: “TRUMP cryptocurrency makes money mainly by people buying and selling it. Here’s how:
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Imagine you buy a TRUMP coin when it’s cheap.
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Then, you sell it later when it gets more expensive.
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The people who create or run the coin usually make money from transaction fees (when someone buys or sells) and sometimes by selling coins themselves.
Basically, TRUMP cryptocurrency could make money for people if the price goes up, but it’s risky — prices can go up or down quickly.”
This is an accurate breakdown of how any cryptocurrency works. However, ChatGPT doesn’t explain one of the biggest risks in investing in meme coins, which is the rug pull. This is when the coin’s developers secure a large number of coins at a low price. Once the public begins to buy coins and raises the value, the developers quickly trade their high-value assets and abandon the project, leaving the other investors with nothing.
English (US) ·