U.S. cryptocurrency markets saw significant activity on Monday, January 20th, with the launch of a new crypto token linked to former President Donald Trump. The “memecoin,” branded as $TRUMP, experienced a rapid rise in value, while Bitcoin also reached a new record, fueled by optimism surrounding the incoming administration.
Launched on Friday night, the $TRUMP token saw its value increase dramatically. Starting at less than $10 on Saturday morning, the token peaked at $74.59 before settling at around $33.88, according to CoinGecko. Concurrent with this, World Liberty Financial, another crypto venture associated with Trump, announced the completion of an initial token sale, raising $300 million and plans for additional token issuance.
This activity comes as many anticipate policies favorable to cryptocurrencies under the new leadership. This contrasts with the regulatory environment the industry experienced under the prior administration. Bitcoin, the leading cryptocurrency, also reached a new all-time high of $109,071 on Inauguration Day, though it later stabilized at approximately $101,867.40.
“The cryptocurrency market gained additional popularity in recent hours due to the launch of the TRUMP and MELANIA cryptocurrencies just before the inauguration,” noted Grzegorz Drozdz, market analyst at Conotoxia Ltd, in a statement.
The new Trump and Melania cryptocurrencies were both created on the Solana blockchain. Solana’s coin price also rose over the weekend, reaching an all-time high of $294.33 on Sunday.
“I think in the short term there’s a chance this could be a sell-the-news event,” explained Matthew Dibb, chief investment officer at Astronaut Capital, adding that many in the crypto community were anticipating executive actions on the first day of the new term. “Bitcoin has already retreated… We are expecting further volatility here and likely a selloff.”
The $TRUMP token, which debuted below $10, jumped quickly, peaking at $72.62 on Sunday. It traded lower Monday, declining from $52.15 to the $30 range late in the day.
According to its website, CIC Digital, an affiliate of Trump’s business, and another entity called Fight, Fight, Fight, own 80% of the Trump coin’s tokens. The site claims they offer “an expression of support for, and engagement with, the ideals and beliefs embodied by the symbol ‘$TRUMP'” and are not an investment opportunity.
The launch of World Liberty Financial, just two months before the U.S. election, stirred concerns about ethics and potential conflicts of interest. The Friday launch of Trump’s “memecoin” also triggered scrutiny within the cryptocurrency industry. Key figures in Trump’s circle and administration have existing ties to the crypto world.
“While it’s tempting to dismiss this as just another Trump spectacle, the launch of the official Trump token opens up a Pandora’s box of ethical and regulatory questions,” commented Justin D’Anethan, an independent crypto analyst based in Hong Kong.
The Trump Organization announced earlier this month that the former president would transfer daily management of his extensive real estate, hotel, media, and licensing portfolio to his children. Forbes estimates Trump’s net worth at $6.7 billion, not including his crypto interests.
Speculative Assets
Anticipation surrounding executive actions, and other policy changes, has driven an increase in crypto prices. However, Trump did not announce specific new policies on Monday.
“The market has some great expectations about a bitcoin strategic reserve and a loosening of regulations around digital assets, but it’s more likely these developments will be drip-fed over a series of months rather than days,” shared Dibb.
The dramatic rise in value of the new coin has drawn criticism from some analysts.
“Meme cryptocurrencies, like these, are prone to large fluctuations, and we generally consider them as speculative assets,” said Drozdz at Conotoxia.
Trump’s foray into the digital asset world blends these assets with political influence; according to D’Anethan, it also “blurs the lines between governance, profit and influence.”
