After launching Friday night at $0.18, President-elect Trump's new memecoin $TRUMP surpassed $70 per token on Sunday, and reached rank #19 on CoinGecko.
Some residents of the crypto world, especially Bitcoiners, were absolutely furious, while others were thinking how it could be an overall positive for the industry.
All things considered, the successful launch of the $TRUMP memecoin is a sign that crypto will be heating up as we progress into 2025.
The Negatives
First, let's cover what is wrong about this token launch.
The initial token allocation of $TRUMP is absolutely shameful, with 80% going to companies associated with Trump, and only 20% going to the public. We've already discussed the disadvantages of uneven initial token allocations in a previous article, and Trump's memecoin takes the cake here.
Also, the fact that the token was launched just a few days before his presidential inauguration has people enraged that the President of the Free World would use this official national event to pump his own meme coin. But, here we are.
Understandably, the teams and communities that have been working tirelessly on their own projects throughout multiple bear and bull market cycles are also upset. A memecoin, that essentially took no effort or innovation to create, has skyrocketed past other projects that have been working consistently day and night for years.
Eventually though, the market will have to find the fundamental value of all these different crypto assets.
The Postives
Trump's team chose to launch TRUMP on the Solana blockchain. As such, Solana holders are absolutely thrilled as traders scramble to get their hands on $SOL, pushing it to new all-time highs. Why is this happening? TRUMP has been listed on Solana DEXs like Raydium and Orca, which require some SOL to make trades.
As a prominent businessman and former president, Trump has gained a lot of credibility over the decades. Trump's endorsement of Bitcoin, crypto, and now his own memecoin will surely persuade his hardcore followers to look into the industry. That means more people creating Solana wallets, learning how seed phrases work, and generally being introduced to the world of cryptocurrency.
Moreover, the launch of $TRUMP could spell the beginning of a new trend in memecoins, as more celebrities and politicians consider launching their own tokens. Ultimately, this will draw more capital into the crypto markets, which I think will eventually settle on legit crypto projects that have been innovating and building strong communities.
Finally, any publicity is good publicity. In other words, any news that gets the masses thinking more about crypto, whether in the positive or the negative, will make this industry a bigger part of our collective consciousness.
Speculative Market
Keep in mind that due to years of reckless monetary policy trading stocks, bonds, and cryptocurrencies is like gambling in a casino now. Via artificially low interest rates and QE, the Federal Reserve has trained people to bet on assets, without thinking about their real-world use cases. Eventually assets will have to be repriced based on their fundamental value.
Until next time...
Despite the rage and controversy, I think Trump's latest memecoin is an overall bullish sign for the entire crypto industry. The President of the United States has not only embraced Bitcoin and crypto, but minted his own digital assets. This will inevitable draw more people into decentralized finance.
If you learned something new from this article, be sure to check out my other posts on crypto and finance here on the Hive blockchain. You can also follow me on InLeo for more frequent updates.
Further Reading
- Trump Pulls A 180 On Crypto, Reaffirming That Eventually Everyone Comes Around
- Trump Now Accepting Crypto Donations For His Presidential Campaign
- Are We Underestimating The Power Of Meme Coins?
Posted Using INLEO