Trump’s crypto presidency: It’s not a meme anymore
The cryptocurrency market recently witnessed an unprecedented event. Just two days before his official inauguration, US President-elect Donald Trump made waves by launching an “official meme” cryptocurrency called TRUMP on the X social network. This bold move not only became a sensation but also catapulted his wealth to astronomical heights and led to a surge in crypto trading volumes.
Within 48 hours of its launch, the TRUMP token’s 24-hour trading volume reached a staggering $52.5 billion, indicating a high interest level from private investors and large financial institutions. At the same time, Bitcoin price made a mighty leap, reaching a new all-time high. This synchronized growth shows how political events can ripple through financial markets, creating extraordinary opportunities for speculation.
Of the almost 1 billion TRUMP tokens issued, about 80% are controlled by CIC Digital LLC, an affiliate of The Trump Organization, and another Trump company, Fight LLC. This gives Trump an estimated $40 billion fortune tied to meme coins alone. Such a tremendous success can be attributed to the unique mechanism for attracting investors embedded in the TRUMP token.
Built on the Solana blockchain, the TRUMP token has become a speculative financial instrument, allowing investors to bet on political changes. However, this also makes it an inherently unstable financial asset, as Trump’s political decisions can directly impact the token’s price and, by extension, investors’ profits.
Of the issued tokens, 200 million coins are actively traded. Trump-controlled entities own the rest and may enter the market over the next three years, starting in April. According to the official website, the new cryptocurrency is not an investment opportunity and has nothing to do with any political campaign or office. Still, that hasn’t stopped early adopters from reaping millions on it. On average, Trump’s companies will be able to sell about 24 million tokens per month, further fueling market speculation.
Adding to the family’s crypto empire, Trump’s wife, launched her own token, MELANIA. It quickly skyrocketed in value, reaching $9.6 per coin and achieving a market capitalization of over $1.85 billion. Not to be left behind, Donald’s daughter entered the crypto space with her own IVANKA token, cementing the Trump family’s growing influence in the cryptocurrency arena.
The prospect of easing regulation in the field of cryptocurrencies has sparked enthusiasm in the industry, which has been one of the factors driving Bitcoin’s growth since Trump’s election victory in November.
Interestingly, Trump’s influence extends beyond cryptocurrencies, with notable ripples in traditional currency markets. As the USD experienced a pullback at the start of Trump’s term, European currencies like EUR/USD and GBP/USD show signs of strengthening in response to his inauguration.
Thus, the story of cryptocurrencies launched by Donald Trump highlights how extraordinary political events can profoundly impact financial markets. As the crypto industry navigates this new era, the allure of crypto riches will continue to draw both investors and regulators into its fold. However, it is vital to remember that cryptocurrency investments are inherently risky, and every decision requires careful analysis.