2.6 C
New York
Thursday, February 13, 2025

Crypto Frenzy: Trump Meme Coin $TRUMP Surges Amid Inauguration Hype

Must read

NEW YORK, USA – The launch of Donald Trump’s cryptocurrency, $TRUMP, has ignited a speculative frenzy in the crypto markets, with the token’s price more than tripling from $20 to over $70 within days of its release.

The “meme coin,” announced Friday, January 17, 2025 on Trump’s Truth Social platform and X, has generated $24 billion in trading volume and reached a market capitalisation exceeding $14 billion as of Sunday morning.

A Meme Coin Frenzy

Meme coins, cryptocurrencies inspired by internet trends or cultural phenomena, often lack inherent utility, making them susceptible to extreme price volatility.

Trump’s $TRUMP token, marketed as an “expression of support” for his ideals, is no exception.

The coin’s website, owned by Trump’s CIC Digital LLC, indicates that 80% of the token’s initial supply of 200 million is held by the company, with plans to increase the supply to 1 billion over three years.

This marks Trump’s latest foray into the cryptocurrency world, following the success of his crypto trading card releases during the 2024 presidential campaign, which generated over $4 million per batch.

US President-elect Donald Trump launched his own cryptocurrency, $Trump, as he prepares to take office on Monday as 47th president of the US. | Getty Images
US President-elect Donald Trump launched his own cryptocurrency, $Trump, as he prepares to take office on Monday as 47th president of the US. | Getty Images

A Boon for the Crypto Community

Trump’s imminent inauguration for a second presidential term has fueled optimism within the cryptocurrency community.

Trump has pledged to make the U.S. the “crypto capital of the planet,” promising regulatory reforms that would favour the industry.

His nomination of crypto advocate Paul Atkins as Chair of the Securities and Exchange Commission (SEC) has further bolstered confidence.

Atkins, co-chair of the Digital Chamber’s Token Alliance since 2017, is expected to champion a hands-off approach to crypto regulation.

Trump has also promised an executive order to establish a crypto advisory council with up to 20 members, signalling a significant shift in federal policy toward digital assets.

Concerns Over Speculation and Conflict of Interest

Despite the enthusiasm, experts warn of potential risks associated with $TRUMP and similar meme coins.

Critics highlight the speculative nature of the market, with political endorsements and hype inflating asset prices beyond their intrinsic value.

Larisa Yarovaya, associate professor of finance at Southampton Business School, cautioned against the dangers of politicised crypto endorsements, writing in The Guardian:

“Strong political and government endorsements of crypto, paradoxically, pose a threat to its decentralisation ethos and could ultimately undermine the appeal of crypto assets. If, in 2025, the SEC turns a blind eye, consumers could be left entirely unprotected from financial losses – especially when another meme coin bubble bursts.”

The Trump family’s direct involvement in cryptocurrency has also raised concerns over conflicts of interest.

Trump’s sons, Eric and Donald Jr., launched their own cryptocurrency venture, World Liberty Financial, in 2024.

Leading crypto firms have contributed at least $10 million to Trump’s inauguration fund, adding to the perception of blurred lines between business and politics.

Disclaimers and Market Implications

The $TRUMP coin’s website includes a disclaimer stating the token is “not intended to be… an investment opportunity, investment contract, or security of any type.”

Despite this, the meteoric rise in its value underscores the speculative appetite surrounding the asset.

As trading continues, analysts are closely monitoring whether $TRUMP’s success will be a catalyst for broader crypto adoption or a harbinger of another bubble in the volatile market.

With Trump’s inauguration just days away, the $TRUMP token serves as both a reflection of his enduring brand power and a potential flashpoint in the ongoing debate over cryptocurrency’s role in the financial system.

More articles

- Advertisement -The Fast Track to Earning Income as a Publisher
- Advertisement -The Fast Track to Earning Income as a Publisher
- Advertisement -Top 20 Blogs Lifestyle

Latest article