Trump meme coin gives cryptocurrencies the green light to return to the days of the NFT bubble
A cartoon image of US President-elect Donald Trump holding a Bitcoin symbol to signify the cryptocurrency reaching over $100,000 is displayed at a Coinhero store in Hong Kong, China, in Hong Kong, China, on Thursday, December 5, 2024.
Paul Young | Bloomberg | Getty Images
President Trump’s return to the White House is expected to usher in a golden, albeit chaotic, age for cryptocurrencies in the United States, according to Bernstein.
Over the weekend, Trump launched a meme coin, “Official Trump” Which rose to a market cap of $73 billion in two days before a 50% withdrawal. The move came as Gary Gensler, an opponent of cryptocurrency startups in his heavy-handed approach to enforcement as Chairman of the Securities and Exchange Commission, left his position.
One day after the Trump coin was unveiled, First Lady Melania Trump took off Its own meme currency To less fuss. The sensational revelations drew criticism from many on social media, who expressed concern that it was a bad look for an industry that has struggled to distance itself from its early days of initial coin offering (ICO) bubbles, non-fungible token (NFT) booms, and crypto endorsements. For celebrities. Which led to investors’ losses.
This may be a short-term price to pay for a long-term goal of crypto innovation in a permissive regulatory environment, said Bernstein analysts led by Gautam Chugani.
“Whichever way you see it, we believe the chaotic new era of cryptocurrencies is here,” he said in a note published on Monday. “The president of America has his own coin. Our view is to view the event as a signal that a new regulatory era for cryptocurrencies is here to stay and invest in the most valuable parts of the ecosystem.”
“Given that the previous US regulatory regime was about cracking down on cryptocurrency creators and enforcement actions on token-related activities, the launch of the token by the president is a huge social signal to US construction companies: build away in the US, don’t be shy,” Chogani added: “From the launch of tokens.”
The Trump Meme coin recently traded at around $38.41 on Tuesday, roughly 50% from its high.
Trump Coin Disclaimer Website It says it “is intended to serve as an expression of support for and engagement with the ideals and beliefs embodied by the ‘$TRUMP’ symbol and associated artwork, and… is not intended to be, or be the subject of, an investment opportunity, investment contract, or guarantee of any kind.” “
There are 200 million coins available initially, which will grow to 1 billion over three years, according to the site. Only 10% is publicly available, with another 10% owned by Liquidity and 80% by “Creators and CIC Digital”, affiliated with the Trump Organization.
The meme coin is the latest fundraising effort from the Trump team — which has also launched two NFT collections — Trump Digital Trading Cards on the Polygon blockchain and Trump Bitcoin Digital Trading Cards on the Bitcoin blockchain — as well as the DeFi World Financial Freedom platform on Ethereum.
