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Over the weekend preceding his second-term inauguration, President Donald Trump made headlines with more than politics, thanks to the launch of his $TRUMP meme coin, which skyrocketed to a remarkable $8.11 billion market cap within just five days. In a post on his Truth Social platform and X, Trump wrote: “My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING!” The President’s latest foray into crypto was met with heightened enthusiasm, fueled by months of anticipation following his keynote speech at the 2024 Bitcoin Conference, where he pledged to transform the U.S. into a Bitcoin haven if elected.
Despite stating on the $TRUMP website that the meme coin is “not political and has nothing to do with any political campaign,” the launch certainly increased the spotlight on President Donald Trump in the hours leading up to his inauguration. But what are meme coins, what is the point of $TRUMP, and where can it go from here?
What are meme coins?
Meme coins are a category of cryptocurrencies that start out life as jokes online, viral trends, or events that subsequently inspire someone to create a cryptocurrency. Unlike traditional cryptocurrencies such as Bitcoin or Ethereum, which are designed with specific technological purposes, meme coins tend to lack inherent utility. Their market value is mainly influenced by social media trends, community engagement, and endorsements from public figures.
Meme coins are nothing new. Past examples include Dogecoin, based on the “Doge” meme, or Shiba Inu, based on the dog breed of the same name. These cryptocurrencies tend to be highly speculative and volatile, but as such, can also be a lucrative investment opportunity if traders get in early. They’re known for their spikes in value that drop off sharply as the hype fades.
What does the $TRUMP meme coin mean?
The launch of $TRUMP is significant for several reasons. First of all, it marks a convergence of society and technology as it is based on politics, culture, and cryptocurrency. The wave of media attention received by this new meme coin will also introduce non-crypto-savvy audiences to a significant aspect of the digital economy, potentially piquing their interest and broadening the understanding of the crypto space. Second, $TRUMP’s rapid rise in value and popularity over the weekend drew liquidity from other tokens and coins.
$TRUMP rose to rank 25th out of the 951 currently circulating cryptocurrencies in just 4 days, proving that when the timing is right, meme coins can have a huge impact on inflows into the crypto space. However, the pros always come with cons, and the criticism surrounding $TRUMP cannot be ignored, given that 80% of the meme coin supply is held by insiders (according to the website, a Trump-owned company, CIC Digital LLC) under a 36-month vesting schedule, which has raised questions about price manipulation and fairness.
What crypto promises has Trump made?
The hype around Trump’s latest venture into the world of crypto comes off the back of months of anticipation following a series of pledges he made to the Bitcoin Conference 2024 audience last July. In his keynote speech, Trump spoke of his vision to position the United States as a global leader in cryptocurrency innovation. He promised to create a regulatory environment that fosters blockchain development, attract crypto businesses to the U.S., and convert the government’s stockpile of confiscated Bitcoin into a national reserve.
“The rules will be written by people who love your industry, not hate your industry,” he said. He also proposed that all Bitcoin be mined in the States, which received criticism from some members of the crypto community, as the idea detracts from the democratic freedom and stateless nature of Bitcoin. Whether he was courting the crypto community for votes or genuinely aiming to make the U.S. the crypto capital of the world, the next four years will reveal his true intentions.
“You can buy $MELANIA now”
President Donald Trump was not the only one to launch a meme coin this past weekend. First Lady Melania Trump also announced the launch of her own meme coin called $MELANIA on Sunday, the 19th of January, writing on X, “You can buy $MELANIA now.” As millions of dollars flowed into $TRUMP on Friday and Saturday, many of those funds were pivoted into $MELANIA on Sunday. A conflict of interest? Both cryptos have since plummeted, following a dip in Bitcoin’s value. While the dual launch might have been purely a sell-the-news event, it has undoubtedly drawn mainstream media and public attention to the world of crypto, encouraging people to ask questions and investigate.
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