The new cryptocurrency called was unveiled by a Trump-linked company known as CIC Digital. The launch of this meme coin attracted considerable attention, achieving a fully diluted market capitalization of approximately $73 billion and trading volume exceeding $30 billion within a single day. This rapid success has allowed the TRUMP coin to eclipse the market cap of the previously dominant meme coin, DOGE, which stands at around $54 billion.
The presentation of TRUMP caused various reactions within the crypto industry. Proponents argue that the involvement of a major political figure like the president-elect signals a reduction in regulatory risks for token launches in the United States, suggesting a resurgence of freedom and innovation for American crypto developers.
On the other hand, critics point to the fact that 80% of the TRUMP token supply is controlled by wallets affiliated with CIC Digital, raising concerns about potential market manipulation and the risk of losses for uninformed investors.
Bernstein analysts explain that the Trump family’s cryptocurrency exploration follows their reported experiences with debanking after losing the 2020 election. Trump’s campaign has previously used crypto technology to raise funds, selling branded NFTs, mugs and sneakers.
The success of animal-themed meme coins, such as the frog-themed DOGE and PEPE token, indicates the potential of a politically tagged coin to attract significant investment and new traders, as evidenced by more than 400,000 new owners on the meme token buying platform in a monthly image.
Analysts suggest that the launch of the TRUMP token marks a paradigm shift for the crypto industry, potentially heralding a new era of regulatory perspectives where governments can view cryptocurrency as a direct means of engaging with the public. This could lead to more crypto-friendly policies from certain politicians in the US and other countries.
In the days ahead, market attention will likely focus on how Trump’s connected insiders will leverage the significant 80% of TRUMP tokens they hold. Possibilities include using tokens as collateral for crypto banking and financial projects, creating engagement models to reward supporters, or funding further political initiatives. How Trump’s team manages this supply will be key to the stability of the token’s value.
The launch of the TRUMP token on the blockchain also had a significant impact, with Solana experiencing more than $50 billion in trading volume in the last 48 hours and its token value increasing by approximately 20%. This wave of trading tested the blockchain’s capacity, a challenge that Solana aims to address by scaling to levels comparable to the NASDAQ.
“Any way you look at it, we think the new chaotic crypto era is here. The president of America has his own coin. Our view would be to look at the event as a signal that the new crypto regulatory era is here to stay and invest in the more valuable parts of the ecosystem, but some would could still be appalled – that is,” the analysts wrote in a note.
