Trump’s Crypto Token Sees Huge Gains Amidst Market Speculation
PARIS/SINGAPORE, January 20 (Reuters) – The cryptocurrency market experienced significant shifts as interest in digital assets tied to former U.S. President Donald Trump surged. A new crypto token associated with Trump saw its value skyrocket, while Bitcoin briefly reached a new record high, fueled by optimism surrounding the incoming administration’s potential approach to cryptocurrency regulation.
Launched on Friday night, the so-called “memecoin,” branded as $TRUMP, experienced a remarkable surge. The token’s value quickly rose from less than $10 on Saturday morning to a peak of $74.59 before settling at $33.88 as of Monday, according to the cryptocurrency price tracker CoinGecko. Ethics experts have raised concerns regarding the token.
World Liberty Financial, a separate Trump-linked venture, also announced the completion of its initial token sale, accruing $300 million. The company plans to issue additional tokens in the near future. Analysts suggest that these developments reflect the market’s anticipation of a more crypto-friendly regulatory environment under the new administration.
“The cryptocurrency market gained additional popularity in recent hours due to the launch of the TRUMP and MELANIA cryptocurrencies just before the inauguration,” explained Grzegorz Drozdz, market analyst at Conotoxia Ltd, in a statement.
Bitcoin, the world’s leading cryptocurrency, set a new record, hitting $109,071 on inauguration day. Bitcoin later pared those gains and was last trading at $101,867.40. The market witnessed the introduction of the Trump and Melania cryptocurrencies, both created on the Solana blockchain.
Matthew Dibb, chief investment officer at crypto asset manager Astronaut Capital, commented on the situation, stating, “I think in the short term there’s a chance this could be a sell-the-news event.” Dibb added that investors had been anticipating executive actions to be released during Trump’s first day in office.
Cryptocurrency Market Reacts to Political Developments
Trump’s crypto token started trading below $10 on Friday and quickly escalated, reaching a high of $72.62 on Sunday. Monday saw the token trade lower, declining from $52.15 to trade in the $30 range later in the day.
According to its website, 80% of Trump coin’s tokens are held by CIC Digital, an affiliate of Trump’s business. Coins are purported to be “an expression of support for, and engagement with, the ideals and beliefs embodied by the symbol ‘$TRUMP,'” though they are not an investment or security.
The launch of World Liberty Financial, occurring just before the November U.S. election, raised ethical concerns, as did the release of the Trump “memecoin.” Several individuals linked to Trump’s administration and circle are associated with the crypto industry.
Justin D’Anethan, an independent crypto analyst based in Hong Kong, observed, “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.”
Analysts Weigh In on Volatility and Regulation
The Trump Organization confirmed the president would be handing management of his business portfolio to his children upon entering office. Forbes estimates Trump’s net worth at $6.7 billion, not including his crypto holdings.
Excitement around potential executive orders and policy actions that could reshape U.S. cryptocurrency policy has been driving up prices. However, no new policies were announced on Monday, disappointing some in the industry.
Dibb said, “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.”
“Meme cryptocurrencies, like these, are prone to large fluctuations and we generally consider them as speculative assets,” Drozdz said.
D’Anethan noted that Trump’s coin combines the digital asset world with the political sphere, “blurring the lines between governance, profit and influence.”
