The launch of Trump’s $Trump meme coin has sent its value skyrocketing, raising questions about the crypto market’s future
Washington: So, Donald Trump just dropped a new cryptocurrency called $Trump, right before his second inauguration. It’s a meme coin, and it’s already making waves.
He announced it on Truth Social and X, and guess what? The price shot up from around $20 to over $70 in no time. That’s a huge jump, with trading volumes hitting $24 billion and a market cap of $14 billion!
Now, meme coins are those quirky cryptocurrencies that don’t really have any real use but can go up and down in value like crazy. Just last month, another meme coin tanked 95% right after launching, leaving a lot of investors pretty upset.
People in the crypto world are buzzing about Trump’s return, thinking it might lead to friendlier regulations. Trump even said he wants the US to be the “crypto capital of the planet.”
He’s picked Paul Atkins, a known crypto fan, to head the SEC. This guy has been involved in crypto advocacy for years, so it seems like he’s all in.
Trump also plans to set up a crypto advisory council with around 20 members once he’s back in office. Sounds ambitious, right?
But here’s the catch: some experts are worried this could lead to a bubble. If political backing inflates prices too much, it might not end well for investors.
Larisa Yarovaya, a finance professor, pointed out that strong political support could actually hurt the decentralized nature of crypto. If the SEC doesn’t step in, people could lose a lot of money when the bubble bursts.
Interestingly, the $Trump coin is mostly owned by a Trump company, which holds 80% of the 200 million tokens. They plan to increase that to a billion over the next three years.
Trump has dabbled in crypto before, releasing trading cards that made over $4 million. His sons are also in the game with their own crypto venture, raising eyebrows about potential conflicts of interest.
And get this: major crypto firms have already thrown at least $10 million into Trump’s inauguration fund. It’s a wild ride!
On the coin’s website, they made it clear that these memes are more about supporting Trump’s ideals than being a solid investment. They’re trying to keep it political-free, but it’s hard to ignore the connections.
