The cryptocurrency community became skeptical after President Donald Trump launched a new Solana-based coin, $TRUMP.
The announcement and market reaction
The announcement of the $TRUMP memecoin. Source: Donald J. Trump via
On January 18, Trump shared an enthusiastic message on his X account, declaring: “My NEW official Trump meme is HERE! It’s time to celebrate everything we stand for: WINNING! Join my very special Trump community. GET YOUR ASSET NOW. The same message was also shared on his Truth Social account, with a link to a website that looked very similar to those used for his previous NFT collections.
The Trump Meme Piece, Source: BNC
The newly issued $TRUMP token received immediate attention, trading at $30.35 and reaching a market cap of $8.3 billion within hours of its launch.
Concerns About Token Legitimacy
The unexpected move has sparked various reactions from the crypto community, with many questioning whether the posts are genuine or the result of a hack. But folks, this wasn’t a hack, it was a real launch. Is Trump a crypto hero or villain?
Crypto industry executives initially questioned whether the $TRUMP launch announcement messages were genuine or the result of a hack. Source: Max. via
The crypto community was skeptical of the meme coin promoted on Trump’s social media. Source: JRNY Crypto via
Authenticity of the launch
We now know the launch was genuinegiven the involvement of CIC Digital, the official licensee behind Trump’s NFT projects. The $TRUMP token website bears similarities to sites that promoted Trump’s previous NFT collections.
However, there are several red flags regarding the transparency of the project. CIC Digital holds 80% of the token supply, which is subject to a three-year unlock period, raising concerns about possible market manipulation and the lack of decentralization typically associated with blockbuster cryptocurrencies.
Trump Meme Coin Allocation, Source: Trump
Impact on the Solana blockchain
Solana (SOL) price is still holding above the psychological support of $200. Source:Brave new piece
The sudden increase in $TRUMP’s market capitalization has had ripple effects on the broader crypto market, particularly on the Solana blockchain. Solana (SOL) price rose 17.17% to $253 as the token’s launch attracted widespread interest. Solana was effectively crowned the new Crypto King. Solana Price Forecast now suggest that SOL will surpass ETH in 2025.
Trump and crypto: a volatile intersection of politics and crypto
This isn’t the first time Trump has made headlines with crypto. Previously, his administration took a more conservative stance on cryptocurrency regulation, making Trump’s potential second term even more ambiguous for the market. Additionally, his previous involvement in the NFT space– the sale of Trump-themed digital trading cards – has called into question how seriously he takes cryptocurrencies.
The launch of $TRUMP raises many questions about the future of cryptocurrency in the political sphere. With the inauguration Just around the corner, the crypto community is on edge, waiting for more details to see if memecoin represents a legitimate effort by Trump’s team or another speculative gimmick.
As the situation evolves, one thing becomes clear: the intersection of politics and cryptocurrency will continue to be a source of both intrigue and uncertainty. Whether the move will help solidify Trump’s position as a crypto supporter or damage his credibility remains to be seen, but it serves as a reminder of the volatile and often unpredictable nature of the digital currency market. The crypto community will likely be closely monitoring any further announcements or clarifications regarding the $TRUMP token in the coming days.