Trump is changing the world of cryptocurrency. What you need to know


The information in this material is not an investment recommendation
Cryptocurrencies began to lose value sharply amid the decision of U.S. President Donald Trump to impose duties on goods from Canada, China and Mexico. The same fate befell Trump's "personal" cryptocurrency, Official Trump (TRUMP), which he released a couple days before his inauguration. What changed the release of the "presidential" cryptocurrency - in the material "Izvestia".
How the cryptocurrency TRUMP appeared
- The market has already had many coins named in honor of the U.S. President, but none of them was not directly related to him: in particular, Doland Tremp (TREMP), Super Trump (STRUMP) and Make America Great Again (MAGA). Initially, many did not believe that the president himself had issued a cryptocurrency. The prevailing opinion was that it was a Rug Pull. Another deception in the market, the essence of which boils down to the fact that first fraudsters artificially inflate the rate of the currency, and then at the peak of value get rid of it.
- However, on January 17, Donald Trump himself announced the coin on his official page in the social network X (banned in Russia), and on the same day it was launched. "It's time to celebrate everything we stand for: victory!" - the politician wrote and attached a link to his personal memcoin. The coin's logo was an image of Donald Trump raising his fist just after an assassination attempt on July 13, 2024. The Republican launched TRUMP before the inauguration, as he was acting as a private citizen and not the president at the time.
- A total of one billion Trump tokens will be issued . A fifth of the coins were put on the market on the first day, the rest will appear within three years. The trading volume of memcoin reached $11.17 billion in the first day. In just the first two days, its price soared to $75, and its capitalization exceeded $15 billion. The issue of Melania - the coin of the wife of the president Melania Trump - is also a billion coins, which will be distributed within 13 months.
- Overnight, the price of TRUMP soared 300%, and by the afternoon of January 19, the memcoin was trading above $75. At the peak, it took the 19th line in the list of the most expensive cryptocurrencies with a capitalization of more than $15 billion. 24 hours later, the wife of the President Melania (MELANIA) released her coin. Along the way, she dropped her husband's quotes (to $40) as traders rushed to sell TRUMP to buy the new rising memcoin.
- TRUMP is now trading below $20. Despite the significant drop, its capitalization still exceeds $3.4 billion (34th place). MELANIA is not so highly valued by investors: the coin can be bought for less than $2. Its capitalization exceeds $680 thousand (97th place).
- In general, after the appearance on the market, which caused resonance, the value of cryptocurrency four Trump began to fall. Against the background of protectionist measures of the new US President, the fall only accelerated. In the near future, it is unlikely to expect the price to return to the original indicators.
What changed the launch of TRUMP
- Many criticize Trump for perverting the essence of blockchain, as the technology is a symbol of independence from the state. Also, such political coins can turn into an ideal vehicle for bribery. Essentially, it is a financial instrument through which people can transfer money to the president's family due to his position.
- In addition, TRUMP can become leverage to influence United States politics. For example, having bought a large amount of presidential currency, foreigners can try to gain favor with the US leader, and in extreme cases - even threaten to collapse quotations, which will be a blow not only to Donald Trump's image, but also to his wallet.
- At the same time, Trump's memcoins can be seen as a new type of asset. It is a political approval marker that measures the current popularity of the American president and his policies.
What will happen to the TRUMP cryptocurrency
- The few days before and after the inauguration and the launch of memcoin were one of the most active periods in the exchange's history. However, traders were left unsatisfied with Trump's inauguration speech on January 20. The US president was expected to mention the crypto asset class as a blueprint for the promised strategic bitcoin reserve. However, he completely ignored the topic of cryptocurrencies, which he actively touched upon during his election program. As a result, following bitcoin, the value of other tokens also plunged. Name tokens of Trump and his wife Melania collapsed for a similar reason.
- In addition, Trump also hurt the crypto market with his protectionist policy . He signed an executive order on duties: for China the rate will be 10%, for Mexico - 25%, for Canada - 10% for energy resources and 25% for the rest of imports. Against this backdrop, cryptocurrencies began to lose value sharply - bitcoin reached a three-week low, Ethereum - the lowest level since early September 2024, and Toncoin is trading at its lowest level since March 2024.
- Most wallets holding TRUMP hold less than $100, indicating that retail interest in the token is prevalent. Moreover, almost half of the buyers created their wallets on the day of token purchase. Thus, the majority of Trump coin buyers are not crypto exchange regulars, but supporters of the new head of the White House, who express their support in this way.
- Online stores selling goods branded with the US president's name have started accepting the TRUMP memcoin as payment. These sites sell watches, perfumes and sneakers. The goods are not designed, manufactured, distributed or sold by Trump or related entities, but the services use the brand under a paid licensing agreement.
- The coin has the potential to bring billions to Trump and create a conflict of interest for his administration. Since launch, trading of the coin has brought Trump-affiliated entities at least $11.4 million in commissions.
The golden age of the crypto market
- The official launch of Trump's memcoin can be seen as a "paradigm shift," suggesting a new regulatory era where cryptocurrencies are seen as a technology to directly interact with the masses. This could be the beginning of the "golden age" of cryptocurrencies. In his first term as president, Trump was wary of cryptocurrency, but in 2024 he said he plans to make the US the "crypto capital of the planet." During the election race, he repeatedly emphasized support for the crypto market to win the loyalty of voters.
- For high government positions, the president considered candidates loyal to crypto. For example, Ilon Musk headed a new structure to fight bureaucracy and optimize public administration in the United States. It was named DOGE, a direct reference to the Dogecoin memcoin. This policy contrasts with the tightening of the screws on the crypto market during Biden's presidency.
- At the same time, it is worth remembering that memcoins are not backed by tangible assets, so they cannot be considered as an investment instrument. It is a highly speculative asset that resembles a financial pyramid: those who enter it at the start can increase their capital many times over. At any moment the trend is replaced by a sharp fall, and the mass of people get losses.
While preparing the material, Izvestia spoke with:
- Mikhail Uspensky, a member of the State Duma's expert council on the legislative regulation of cryptocurrencies;
- Vitaly Kitaychuk, cryptocurrency expert and head of financial and technological company Only Bank.
Переведено сервисом «Яндекс Переводчик»