U.S. President Donald Trump’s new token, based on blockchain, rose to more than $10 billion in market value on Monday. The enthusiasm over his crypto-friendly administration was one of the main reasons for the Bitcoin boost and taking it to a new height.
This new token was launched on Friday night. This is also known as the “memecoin”, Trump’s new token, rose from the level of $10 on Saturday morning to as high as $74.59 before losing some value on Monday. The token, branded $TRUMP and criticized by ethics experts, was last trading at the level of $33.88, as per the cryptocurrency price tracker CoinGecko.
On the other hand, World Liberty Financial, another Trump-linked crypto project, also announced on Monday. It had completed an initial token sale, raising $300 million, and would look to issue additional tokens.
The expansion of Trump’s crypto interests comes with his administration’s enthusiasm in ushering in a “golden age” for cryptocurrencies, where there was strict regulatory scrutiny for cryptocurrencies under former President Joe Biden.
Bitcoin, the world’s largest cryptocurrency, hit a new record of $109,071 on inauguration day when Trump was sworn in as the 47th U.S. President, but later pared those gains and was last trading at $101,867.40.
“The cryptocurrency market gained additional popularity in recent hours due to the launch of the TRUMP and MELANIA cryptocurrencies just before the inauguration,” said Grzegorz Drozdz, market analyst at Conotoxia Ltd, in a statement.
The Trump and Melania cryptocurrencies, the latter of which was launched on Sunday, were created on the Solana blockchain.
The price of Solana’s coin also rose over the weekend, hitting an all-time high of $294.33 on Sunday.
More on Trump’s New Token
“I think in the short term, there’s a chance this could be a sell-the-news event,” said Matthew Dibb, chief investment officer at crypto asset manager Astronaut Capital. He further added that crypto investors had been anticipating some executive actions during Trump’s first day in office.
“Bitcoin has already retreated … We are expecting further volatility here and likely a selloff.”
Eighty percent of Trump coin’s tokens are owned by CIC Digital which is an affiliate of Trump’s business, and another entity called Fight, Fight, Fight.
It says the coins are “an expression of support for, and engagement with, the ideals and beliefs embodied by the symbol ‘$TRUMP’” and are not an investment or security.
The launch of World Liberty Financial just two months before November’s U.S. election caused concern over conflicts of interest and ethics. The launch of Trump’s “memecoin” on Friday night also raised red flags, even among those in the cryptocurrency industry. Various vital figures in Trump’s administration and his circles have ties to the crypto industry.
“While it’s tempting to dismiss this as just another Trump spectacle, the launch of the official Trump token opens up a Pandora (OTC: PANDY)’s box of ethical and regulatory questions,” told by Justin D’Anethan who is an independent crypto analyst based in Hong Kong.
According to the Trump Organization, Donald Trump would hand daily management of his multi-billion-dollar media, golf, hotel, licensing portfolio, and real estate to his children when he entered the White House. The present net worth of Donald Trump stands at $6.7 billion, although that does not include his crypto ventures.
Speculative Assets
Excitement over expected executive orders and other policy actions, that could initiate a huge change in U.S. cryptocurrency policy have helped turbocharge crypto prices in recent months. But Donaldo Trump did not declare any new policies or regulations on Monday as many experts had hoped for.
“The market has some great expectations about a bitcoin strategic reserve and a loosening of regulations around digital assets, but it’s more likely these developments will be drip-fed over a series of months rather than days,” said Dibb.
The huge rise in the new token prices prompted concern among some analysts.
“Meme cryptocurrencies, like these, are prone to large fluctuations, and we generally consider them as speculative assets,” Drozdz at Conotoxia said.
Trump’s new token represented a blending of the world of digital assets into the political arena. On the other hand, this also “blurs the lines between governance, profit and influence,” D’Anethan said.
Why Trump’s New Token Surged?
There are various reasons behind the surge of Trump’s new token. Some of the contributing factors are described below.
Re-Election of Donald Trump as US President
Donald Trump becoming the President of the United States of America for the second time has worked as a contributing factor in surging this new token. The massive publicity of Trump has proved to be beneficial in boosting the value of this new token.
Fear of Missing Out (FOMO)
With the rising value of the coin, retail investors started investing due to FOMO, which drove its price and enabled the investors to make significant profits.
Community Support
The community support from Trump’s followers is another reason that boosted the price of this new token while driving demand for it through the roof.
Strategic Partnerships
The strategic partnerships with various major crypto exchanges are another reason why the coin gained a significant amount in the market in a short amount of time.
Financial experts and analysts have compared the boost of this new token with the gains of other meme coins during their initial days, such as Shiba Inu and Dogecoin.
Criticism and Controversies Regarding the New Token
There are several concerns and criticisms surrounding Donald Trump’s new token. A few such concerns are described below:
Political Involvement
Donald Trump’s political brand and influence are closely associated with this new token. According to a segment of financial analysts and experts, the involvement of political overtones may backfire in the future.
Market Volatility
Despite the quick price rise in this new token, financial experts are considering the possibility of the pump-and-dump scheme in the future. The market volatility is one of the most pressing issues in this regard.
Regulatory Risks
There are several regulatory risks associated with this new token. The contentious relationship of Donald Trump with several financial regulators might create issues for the new token in the future.
| Controversy | Detail |
| Market Volatility | Highly risky investment prospect. |
| Regulatory Risks | Scrutiny from various financial regulators. |
| Political Overtones | Political influence and association. |
Should You Invest in This New Token?
If you are looking forward to investing in some new token, then investing in this crypto coin might be a prospect for you to consider. However, you are required to do your own research on different aspects of this new token before making any investment decisions. Checking out the current market price of this new token is another essential thing you must do. Knowing the market pulse would also be helpful for you.
Considering your appetite for loss is also critical, as investing in cryptocurrency is a highly risky venture. This is why you are required to do detailed research and know your appetite before investing your hard-earned money.
How to Purchase Trump’s New Token?
If you wish to invest your money to buy this new token, then you are following the below-described steps mentioned in the table.
| Step | Description |
| Register on a Crypto Exchange | Select a crypt exchange and register. |
| Verify Your Profile | Do the KYC process to verify your account. |
| Deposit Funds | Deposit money to your crypto account using a credit card or bank transfer. |
| Purchase Trump’s New Token | Purchase the new token. |
| Store Securely | After the purchase, transfer your new token to a secured crypto wallet. |
Conclusion
After the inception of Trump’s new token and its quick rise, it has brought a new dawn of cryptocurrency to the market. Traders and investors will consider crypto as the new avenue for growth and profitability, especially when the share markets around the world are in shambles due to various global reasons.
If you are seeking opportunities to make some quick gain or a long-term profit, then investing in this new token could be a prospect for you. Nevertheless, you are required to do your own research prior to making any kind of investment decision. According to financial experts and analysts, this new crypto coin might generate high profits in the coming months.
FAQs
What is the Recent Popular Crypto News That You Should Know Of?
Ans: You should know that Trump’s New Token has gained a significant gain within a couple of days after its introduction in the market.
Is Donald Trump Responsible for the Quick Surge of His New Crypto Token?
Ans: Yes, his influence and impact on the investor’s sentiment is one of the reasons behind the rising price of the new token in the market.
What Does It Mean by Trade Deal Meme?
Ans: This term humorously portrays an exaggerated claim about new cryptocurrency development while creating a digital buzz, driving its price up. The meme day is celebrated for this same reason.
Can You Invest in a Source Meme Coin?
Ans: Yes, you have the option of investing your hard-earned money in a source meme coin. But doing the necessary research on different aspects of such a coin is essential for you.
When does a Crypto Coin Soar?
Ans: A crypto coin soars for various reasons associated with it. The basic reason is increased demand while factors influence impact it. So many other tokens get influenced by this.
