PUBLISHED: January 23, 2025 at 04:53
The $TRUMP political coin soared in popularity during the inauguration of the new president.
The popularity of $TRUMP, which quickly eclipsed World Liberty Financial (WLFI) and is now listed on major exchanges such as Binance, OKX and Coinbase, can be attributed to strategic planning and market alignment, according to Forward Labs (FWX), a blockchain. financial technology startup.
The $TRUMP cryptocurrency is a meme coin, inspired by US President Donald Trump. Meme coins are popular because of social media buzz, viral marketing, and community support, rather than any intrinsic utility or technical functionality.
WLFI is a cryptocurrency project launched by Trump on October 15, 2024, the first time a US presidential candidate has introduced a crypto asset directly linked to a political campaign.
According to Chanon Jaratsuttikul, co-founder and CEO of Forward Labs, $TRUMP’s popularity in the crypto market is due to its fundraising approach, which aligns with global market trends.
By using the Solana channel, designing effective tokenomics and promoting through key platforms such as Dexscreener, the project quickly reached a wide audience, he said.
$TRUMP’s core investors, mostly from the “Degen” community, are experts in trading high-risk assets, Mr. Chanon said.
They actively search for new meme coins with growth potential and know the market dynamics.
The launch and marketing of $TRUMP resonated with that community, contributing to its rapid popularity, he said.
The Degen community is an active cryptocurrency-focused group centered around the $DEGEN token, primarily associated with the Farcaster social platform, Chanon said.
For investors unfamiliar with Web3 (a new iteration of the web focused on decentralization and blockchain technologies), he said purchasing $TRUMP can be difficult. This requires decentralized wallets on the Solana network, such as Phantom Wallet or Solflare, and the use of Raydium DEX to exchange SOL for $TRUMP.
This is a different process than centralized platforms such as Binance or Coinbase, Chanon said.
Despite the complexity, the popularity of $TRUMP has prompted Web2 users to move to Web3.
New investors are signing up for Phantom Wallets, buying Solana (SOL) and using it to trade for $TRUMP on Raydium, as part of a rapid migration to Web3, he said.
Mr. Chanon said Trump’s launch of crypto ahead of his inauguration could either be a passing trend or the start of a new market shift, connecting Web2 and Web3 investors.
“What is clear is that $TRUMP has had a notable impact on the crypto industry and could serve as a case study for future political coins,” he said.