Recently, US President-elect Donald Trump made waves in the crypto world by unveiling the official TRUMP memecoin on the Solana blockchain. His announcement on social media sparked a wild three-day frenzy worth billions, though it also drew significant backlash from the community.
The Rise of Memecoins in the Crypto Market
Ki Young Ju, the CEO of CryptoQuant, commented on this unexpected turn of events, stating that “Trump has initiated the Memecoin Era.” In a post on X, he noted that investors have always been attracted to trends and memes, which is not a new behavior in financial markets.
He explained that the internet and social media have accelerated the dissemination of ideas, reaching larger audiences quickly. This change has led to a new approach to retail investing, moving away from traditional banking and index funds.
Ju emphasized that many investors, especially those new to the scene, are often influenced by trends and popular figures rather than developing their knowledge, stating that without proper regulations, this behavior is likely to persist.
He also observed that the current administration may not be keen on regulating this trend but may prefer to leverage it for their benefit, implying a “use it if it’s gonna happen anyways” mentality.
Furthermore, he remarked that celebrity-backed tokens are a type of memecoin, and the broader trend of financial markets echoing the nature of memes seems here to stay. He believes there’s potential for capitalizing on this phenomenon.
Ju anticipates that Trump may rally his token holders to create a strong community, arguing that the value of the token will likely depend on Trump’s actions and remain above zero, as long as he maintains support from his dedicated followers.
He pointed out that responsibly managed celebrity coins could be less harmful, stating even Bitcoin faced similar issues in its early days with pyramid scheme promoters. Today, many of those who once scammed are now seen as visionaries due to Bitcoin’s success.
He concluded that the current trend is “unstoppable—at least until 2028,” advising investors to stay alert for future developments.
Ongoing Excitement Around Trump Token
Despite early fears regarding potential hacks, Trump’s memecoin soared, achieving a market cap of $6 billion shortly after launch on Saturday.
The token’s value climbed to an impressive all-time high of $75, bringing its market cap to $15 billion. This activity outpaced much of the crypto market, with only a handful of other cryptocurrencies keeping pace. During this rally, Bitcoin transformed a resistance level into support, while Solana reached a new high of $270.
Nonetheless, the launch faced significant criticism from the crypto community, where many raised concerns about its potential impact on the industry’s image. Critics branded it as a “grift,” and investigative commentator Coffeezilla highlighted skepticism regarding the timing of the memecoin’s release just days before inauguration, hinting at unregulated practices.
The scrutiny intensified when incoming First Lady Melania Trump announced her own memecoin, MELANIA, causing a market correction of 6%, leading Bitcoin to dip below $100,000 and the TRUMP token to fall 30% within an hour of its peak.
Despite this, the market is stabilizing ahead of Inauguration Day, during which Bitcoin achieved a new high of $109,000 before slightly retracting. Analysts predict a day filled with volatility but express optimism regarding the potential for a crypto-friendly administration in the months ahead.
