$TRUMP – The meme coin launched to celebrate Trump’s inauguration was the talk of the markets last week. But is this good or bad for the industry overall? Opinions are divided, let’s look at the case for the Trump meme coin as a positive.
The price of the Trump meme rose from $7.0 to north of $75 in a matter of hours, with the Solana-based meme coin amassing billions of dollars in support upon its launch. But $TRUMP has since collapsed and is only $44 at time of writing.
Source: Trump via Brave new coin
While this seems like a sob story at first glance, it actually isn’t.
If anything, the recent sell-off in the TRUMP meme coin is good news and could spark enthusiasm for the broader cryptocurrency market. Let’s explore why.
$TRUMP underscores the true potential of memecoins
For starters, Trump’s initial massive price rally reinforces the broader narrative that meme cryptocurrencies tend to deliver massive gains early, enabling traders to make profits unlike any other asset.
Additionally, even after what was described as a collapse, the meme coin bearing the name of the current US president is still trading at $43. So, those who loaded TRUMP at launch still made over 500% profit.
source: Trading offer
How many investors with capital invested in traditional assets like stocks can make this claim?
So, the whole episode with $TRUMP only reinforced that cryptocurrencies, like DOGECOIN, if chosen correctly, can be a suitable investment if you are looking for gains but are constrained in terms of capital.
This is part of the reason why CryptoQuant CEO, Ki Young Ju, recently changed his mind about meme currencies.
Meme coins have practically endless possibilities
Ki Young Ju was initially skeptical of the coins, going so far as to call them “gambling products.” At one point, he described the rise of cryptocurrencies as a crypto market crisis.
In his latest post on X.comHowever, Joe described memes as “the spiritual energy of the Internet community.” The CryptoQuant CEO admitted that he had previously failed to fully understand and therefore underestimated the potential of meme currencies. He said:
“As long as a meme has enough mindshare, meme currencies can take countless forms in the future. The possibilities are practically endless. The fact that financial markets behave like memes is not going away, so it’s worth thinking about how to make the most of it.”
Note that another meme named after Trump’s wife “Melania” was also released over the weekend. It is currently trading at $4.50 versus its high of $12.67 on Sunday.
Why is the TRUMP meme coin rising again on Tuesday?
After the initial explosive rise, the price of the TRUMP meme coin dropped to around $28 on Monday. But it has since recovered to $43 at writing.
source: X.com
Much of the resurgence of the president-branded meme has been related to the “new”Cryptography Task ForceThe US Securities and Exchange Commission launched on Tuesday.
The new initiative will focus on “developing a comprehensive and clear regulatory framework for cryptocurrency assets.” It will also address matters related to the registration of crypto assets, according to a press release issued on Tuesday.
The US Securities and Exchange Commission is revamping its strategy for regulating cryptocurrencies following the departure of Chairman Gary Gensler. Acting Chairman Mark Ueda announced a new Cryptocurrency Task Force to create a clear regulatory framework for crypto assets.
Led by Commissioner Hester Peirce, a cryptocurrency advocate, the task force will collaborate with industry stakeholders, Congress and the Commodity Futures Trading Commission (CFTC) to resolve jurisdictional disputes and regulatory ambiguities. The SEC aims to move away from its rigid approach to enforcement, which has caused confusion and stifled innovation. Pearce highlighted the importance of broad cooperation to protect investors, support innovation, and enhance market integrity.
Today’s launch of the Crypto Task Force is the Trump administration’s first step toward reducing regulatory hurdles for cryptocurrencies.
How has $TRUMP helped the broader cryptocurrency industry?
Overall, the successful launch of Trump Coin and the billions it attracted within hours attracts significant media attention to memecoins, underscoring their potential to generate massive returns.
The meme coin bearing the name of US President Donald Trump has played a prominent role in mainstream recognition, opening doors to wider acceptance and integration of cryptocurrencies into the global financial ecosystem.
Moreover, the growing popularity of meme coins could inspire new and innovative projects in the cryptocurrency space. Therefore, the success of $TRUMP could create a positive ripple effect, encouraging more interest and investment in the overall cryptocurrency market. That would be a huge win for the entire market. Encryption to the moon.
