Key Takeaways
- Launched on 17th January, Donald Trump's meme coin, $Trump, quickly became one of the top 20 cryptos by market cap
- Trump coin is a meme coin released on the Solana blockchain. With a max supply of 999.99 million coins
- Due to Trump's personal brand image and influence, the Trump coin surged by 700% in just 48 hours
- The Trump crypto coin is deeply influenced by market sentiment toward Trump's presidency, and could collapse as fast as it surged
Introduction
Donald Trump, the US President-Elect, has issued a new cryptocurrency called Trump Coin, $TRUMP. But, if history has taught us anything, speculation of the Trump coin may over-inflate its value and potentially have long-lasting repercussions, leading to many investors like yourself losing their investment.
If you're considering buying the Trump meme coin, you may want to thoroughly research the coin and potentially wait and see what happens post-inauguration. The crypto industry is very reliant on market sentiments and could quite easily see the coin plummet as fast as it surged.
What is Trump coin ($TRUMP)?
The Trump Meme Coin is a cryptocurrency issued on the Solana blockchain and issued personally by US-elect, Donald Trump. The Trump crypto coin currently has a max supply of 999.99 million and currently 200 million in circulation. Due to its nature, the Trump coin is nothing more than a meme coin, driven by speculation rather than any intrinsic value.
Why has Trump launched a cryptocurrency?
I suppose it boils down to two main points, one, because Trump wants to show his support for the industry and provide a way for crypto communities to show their support. Secondly, because he can. Trump is now president of the US, enabling him to drive the industry with very little regulatory interference.
What makes Trump coin so popular?
Based on meme coins being what they are, you may be thinking why Trump coin has had a different market reaction. Based on my personal experience in analysing and trading meme coins, I have identified four key factors that are driving the Trump coin price.
Politically motivated
Considering Trump will serve another four years as the US president, he will be the 'most powerful man in the world' throughout that time. This underlying perception of power resonates strongly among crypto traders, potentially increasing trust within the crypto community.
Personal brand image
Donald Trump's personal brand image is a global phenomenon. He is a globally recognized individual, who has amassed a significant following both on and offline. Due to Trump's recent support for the crypto industry, many have associated him with taking a friendly stance, which is leading to hype around Trump's meme coin.
Market timing
Timing is everything. Since November 2024, cryptocurrencies have seen a significant bull run, with very little resistance. This support in market sentiment toward the industry comes due to Trump winning the presidency and now with the Trump coin launched several days before his inauguration, many are speculating the $TRUMP will surge even higher throughout his four-year term.
Policy expectations
With a crypto-friendly US president, many investors are relieved by Trump's policies on the industry. He will commit himself to de-regulating the industry, allowing it to flourish. He has appointed Paul Atkins as the new head of the SEC to lead the charge in making America the so-called "crypto capital of the world".
Should I buy Trump coin?
Any investment into the crypto industry carries incredibly high risk, and this goes for the Trump coin too. The industry generates zero intrinsic value and this is important because it means the entire industry is propped up based on speculation.
This speculation drives the perceived value of cryptocurrencies. Once that speculation takes a downturn, many crypto traders will begin selling their assets. Due to no protection from regulation, it is entirely possible for cryptocurrencies to become $0.
Based on the recent surge of the Trump meme coin, it could be worth holding off and seeing how the market reacts after Trump's inauguration and first several weeks in office. This could offer a clear sign as to whether the Trump coin is stable, in cryptocurrency terms that is, enough to add to your investment portfolio.
Frequently Asked Questions
How much of $Trump does Donald Trump own?
Currently, Donald Trump owns 80% of the Trump meme coin. It is unclear how much Trump will earn from the launch of his own cryptocurrency, but it is clear he is relying on his personal brand image and position of power to drive its popularity.
Why did Melania launch a crypto?
Named, Official Melania Meme, $MELANIA was launched on the eve of Donald Trump's inauguration. Quite frankly, no one seems to know why. The best guesses are that Melania is showing support for the crypto industry and wants to offer her followers a way to benefit from her brand image.
Is Trump coin a pump-and-dump scheme?
It is yet unclear what Donald Trump's goal is after announcing and launching his meme coin, with many speculating that it could lead to many crypto investors losing their investments. If history has taught us anything, you should be very cautious before investing in this meme coin.
When will crypto crash?
It is hard to gauge if or when crypto will crash as it is a multi-trillion dollar industry with a substantial amount of retail, institutional, and governmental support. However, historically, we have seen "crypto winters" occur when the industry is threatened by factors such as regulation, war, or scandals.
Conclusion
It is certainly an unusual action taken by a US president, especially one that has a significant amount of influence over the industry and regulating bodies. While many crypto investors are pleased with the launch, there are many who are sceptical.
If you are considering buying Trump's meme coin, you should treat it like any other meme coin and proceed cautiously. When I am trying to decide what crypto to buy, I find myself using Intellectia AI, a platform that utilizes AI to analyze stock and crypto giving me a simplified breakdown of whether an investment is a good or bad choice.
