The $TRUMP coin, with the slogan “Fight, fight, fight!”, claims to represent “Everything we stand for: WINNING!”. Built on the Solana network, the $TRUMP token has a total supply capped at 1 billion coins, with 200 million available initially, according to the official website. However, 80% of the supply is held by Trump Organization affiliate CIC Digital, and a CIC co-owned entity called Fight Fight Fight LLC which are subject to a three-year unlocking schedule, meaning they cannot sell all of their holdings at once.
A disclaimer on the meme’s website stated that the Trump meme tokens were intended to function as an “expression of support for, and engagement with, the ideals and beliefs embodied by the symbol $TRUMP” and are not “intended to be, or to be the subject of, an investment opportunity, investment contract, or security of any type.”
Do you intend to launch your own Meme Token?
What is Needed to Launch a New Crypto Token in Singapore
1. Prepare a White Paper
A white paper is a document that explains how the token will work and its characteristics. It should explain the key differentiators and features of the cryptocurrency clearly and the gap that the cryptocurrency is trying to fill in the market. Important information to include in a white paper includes, explanation of the utility of the token. Any technical details like smart contracts, scalability solutions and security measures may also be included.
2. Ensure the Token Does Not have Characteristics of a Security
Security tokens represent an investment contract or ownership stake in an external asset, company, or revenue stream, and are designed as an investment vehicle, offering holders a stake in a company or asset or providing dividends or profits. A utility token, on the other hand, provides access to a product, service, or network. It is not designed to represent an investment and typically serves a specific function within a blockchain ecosystem. It enables users to interact with the platform or ecosystem, such as paying transaction fees, voting on governance proposals, or accessing a service.
3. Obtain a Legal Opinion From a Law Firm to Confirm the Token is a Utility And Review All of The Information That You Put Online.
Due to the complexity of the related regulations and processes involved, it would be wise to seek help from legal professionals that are familiar with said processes. A review of all the materials published online on the cryptocurrency should be conducted to remove any inference that the token is a security.
4. Make Sure Token Assessment is Done Pursuant to Payment Services Act (PSA)
If the activities of the cryptocurrency fall under the PSA, a Payment Services License should be obtained. The type of license depends on the scale and nature of your operations. A Standard Payment Institution License is for smaller-scale operators while Major Payment Institution Licenses are for businesses exceeding specific thresholds (e.g., $3 million monthly transactions).
On top of that, compliance obligations also have to be fulfilled, such as Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) measures. Proper customer due diligence (KYC) should be conducted, suspicious transactions should be reported to the authorities and customer funds should be safeguarded with cybersecurity measures.
5. Before trying to launch the new cryptocurrency, understand the listing requirements of each exchange platform.
As different crypto exchange platforms have different requirements that need to be fulfilled before a launch of a new token, it is important to ensure that the token can fulfill all the requirements that have been laid out. Guidelines for the legal opinion required before a listing are also common.
Do reach out to our panel of crypto lawyers if you require legal assistance in launching your own Meme Coin.
