Since his inauguration, President Donald Trump has been associated with the successful launch of a meme $TRUMP coin. On Jan. 17, $TRUMP held its initial coin offering, quickly becoming the recipient of significant capital flows, not to mention a tremendous price appreciation.
According to Binance, $TRUMP soared to as much as $75.35 as billions of dollars in capital flowed into the token within days of debuting at 17 cents. $TRUMP, has since pulled back considerably since the inauguration, and now trades for around $17.66. Yet even after the sell-off, $TRUMP continues to have a market cap of $3.76B and daily trading volume of $4.31B as of February 3rd.
Although the President’s crypto project has become the subject of controversy, the industry likely sees this as yet another sign that the incoming administration is committed to implementing a pro-crypto agenda, as promised on the campaign trail.
Hosted on the Solana blockchain, $TRUMP was created by entities affiliated with the Trump Organization. As a meme coin, $TRUMP does not hold any intrinsic value or utility. Promotional materials for the token also contain disclaimers stating that it is not an investment product, and has no connection to any political campaign, political office or government agency.
Launched with 1 billion tokens outstanding, 200 million were sold at the ICO, leaving 800 million in the hands of the two entities behind the launch, CIC Digital LLC and FightFightFight LLC. As has been the case with many of his prior business ventures, Trump’s crypto venture has already been the subject of scorn by critics of the President.
Some critics believe that $TRUMP is merely the latest attempt by Donald Trump to profit from his political fanbase. Others have raised concerns about a sitting President controlling a cryptocurrency, given the opportunity for it to be used for political purposes, the aforementioned disclaimers notwithstanding.
That said, while $TRUMP may be providing further ammunition for those critical of the President, it has likely further bolstered his reputation among the crypto community, increasing their confidence in his plans to implement pro-growth cryptocurrency policies.
The Most Pro-Crypto President in History?
Back in December, Eric Trump, the President’s son, stated that his father would be the “Most Pro-Crypto President in History.” While that may sound like a standard issue Trumpism, the current President’s interest and support for cryptocurrency goes beyond just the launch of his own meme coin.
Since taking office, President Trump has also signed a pro-crypto executive order, and the industry expects him to issue additional executive orders/implement other regulatory changes that are favorable to the continued growth of the cryptocurrency space. That said, while positive crypto news has helped to boost the value of Bitcoin and other major cryptos, negative news could have the opposite effect.
In fact, one recent move from the President has led to a pullback in cryptocurrency prices. That would be Trump’s imposing of higher tariffs on Mexican, Canadian, and Chinese goods. Driving a new round of fear, uncertainty, and doubt among investors, this move immediately affected crypto prices, with Bitcoin falling below $100,000.
What’s Next for $TRUMP, and the Crypto Market at-Large
Like other major cryptos, $TRUMP has also taken a sharp hit on this news, falling by double-digits following the tariff hikes. With the market still reacting negatively to the Trump tariff news, it’s far from certain where crypto prices are headed from here.
Only time will tell whether this is a short-term sell-off, or the start of the “Trump trade” in cryptocurrencies unwinding. That said, while pushed lower by the latest actions by the President, subsequent actions, especially those that pertain directly to crypto, could bring a fast end to this latest round of volatility.
With regards to $TRUMP, even as the token has zero utility or intrinsic value, it would not be surprising if, in tandem with major cryptos, $TRUMP prices bounced back as well if more promising news soon arrives. Besides being affected by macro news, if the Trump-affiliated entities that control this token decide to sell more into the open market, this could have an outsized impact on prices as well.
Source: Cosmo Politian
