Donald Trump’s newly launched cryptocurrency, $TRUMP, has taken the digital asset world by storm, soaring past a $10 billion valuation just as he assumed office for his second term. Introduced ahead of his inauguration, the so-called meme coin generated massive trading activity, sparking interest and debate among supporters and critics alike.
Launched on Friday, $TRUMP experienced an extraordinary rise, jumping from under $10 on Saturday to a peak of $74.59 before stabilising at $45.21 by Monday afternoon. The token’s market capitalisation exceeded $9 billion, according to CoinMarketCap. The excitement surrounding $TRUMP contributed to broader cryptocurrency market gains, with bitcoin hitting a record high.
Why did Trump enter the crypto space?
$TRUMP is marketed as a representation of Trump’s ideals and beliefs, quickly gaining traction among his supporters. The coin’s branding references moments from Trump’s life, including the assassination attempt on him in July. Trump’s team, however, has emphasised that $TRUMP is not an investment or financial security, framing it instead as a symbol of loyalty.
Most of the $TRUMP supply is controlled by CIC Digital, an affiliate of the Trump Organization, and a second entity called Fight, Fight, Fight. While many in Trump’s base have embraced the cryptocurrency, some in the broader crypto community have raised concerns about its speculative nature. Independent crypto analyst Justin D’Anethan highlighted ethical and regulatory questions surrounding the launch, as reported by Reuters.
When Melania Trump joined the crypto frenzy
Following Trump’s launch, Melania Trump had also introduced her own cryptocurrency, $MELANIA, which quickly surpassed $1 billion in market value. Both tokens operate on the Solana blockchain, a network that has seen significant growth thanks to the Trumps’ ventures. Solana itself reached a record price of $294.33 over the weekend, buoyed by the excitement surrounding these launches.
The wider cryptocurrency market rallied in response to the Trumps’ entry, with bitcoin hitting an all-time high of $109,071.86 before settling at around $105,297. Analysts speculate that Trump’s administration may favor looser regulations for digital assets, further boosting market optimism.
Concerns over regulation
The rapid rise of $TRUMP and $MELANIA has drawn mixed reactions. While some, like Peter Schiff of Euro Pacific Asset Management, hailed $TRUMP as the new “digital gold,” others warned of the risks associated with meme cryptocurrencies. Grzegorz Drozdz, an analyst at Conotoxia Ltd, cautioned that these tokens should be treated as speculative assets rather than reliable investments.
Trump’s return to power has reignited debates over cryptocurrency regulation, with expectations that his administration may reduce regulatory barriers for digital assets. However, questions persist about the influence of public figures on volatile markets. “Should political leaders wield such influence in speculative markets?” D’Anethan asked, suggesting that regulatory scrutiny might be on the horizon.