Trump’s $TRUMP meme coin ‘more gambling than investing’ warns deVere’s Green By Investing.com

Investing.com — The cryptocurrency market has been in turmoil following the launch of Donald Trump’s $TRUMP meme coin, which has risen more than 11,000% in value since its launch on Friday. The coin reached a market capitalization of $66 billion by Sunday afternoon, marking Trump’s bold foray into digital asset and commodity sales ahead of his impending inauguration on Monday.

The $TRUMP coin was announced at the Truth Social late Friday and was launched to commemorate Trump’s victory in the presidential election. The coin, which is based on a blockchain platform, started with a limited supply of 200 million coins. According to the coin’s official website, the supply is expected to increase to one billion in the next three years.

The dramatic rise in $TRUMP has sparked a lot of conversation, but Nigel Green, CEO of the deVere Group, advises caution. Green said, “This is a revival of the meme coin trend we saw in 2021 and 2022, where many young, inexperienced investors got burned by extreme volatility. No doubt, investors will get burned by this craze.”

Green noted the speculative nature of meme coins and warned that their values ​​can change drastically. He explained that while some can make big profits, this type of investment is inherently high-risk and unpredictable. He stated: “Let’s be very clear: this is more of a gamble than an investment. If you’re thinking about getting involved, you must first have a solid, diversified, long-term plan.”

The rapid rise of the $TRUMP coin highlights the risks associated with meme coins, which are less influenced by fundamentals and more by social media driven hype. Green compared the phenomenon to gambling, stating that many day traders are likely to join, hoping to capitalize on the fear of missing out (FOMO). He said: “They generally don’t buy because they think the coin has inherent value. They buy because they hope others will push the price up, allowing them to sell at a profit.”

Green emphasized that this strategy comes with significant risks and that meme coin values ​​are likely to fluctuate widely. He added: “Understand the real risks to your money. It’s not the same as investing in sound assets. Gambling is not the same as investing.”

Despite the hype surrounding $TRUMP, the launch could signal a crypto-friendly approach by the incoming Trump administration. There is speculation that Trump’s venture into digital assets is in line with his administration’s likely favorable stance on cryptocurrencies, potentially leading to further adoption and innovation in the sector.

Green remains positive about the broader implications for the crypto market, stating that the pro-crypto administration could accelerate the adoption of digital currencies and blockchain technology. He said: “This will have long-term benefits for the economy. But it’s important to distinguish between speculative meme coins and legitimate digital assets that provide real value and utility. If you want the thrill or novelty of chasing big gains, make sure it’s part of a diversified strategy, not your master plan.”

As the market reacts to this latest development, $TRUMP’s rapid rise underscores the broader debate about the role of cryptocurrencies in the current financial landscape. Green concluded: “A Trump presidency is expected to usher in an era of pro-crypto policies, and while that could pave the way for legitimate growth for established assets like , it also raises questions about the risks of speculative trading fueled by social media hype.”

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