Now Trump has his own cryptocurrency
Although it was met with enthusiasm, it failed to meet expectations
January 27th, 2025
During his electoral campaign, Trump did not hide being a strong supporter of cryptocurrencies. For this reason, experts and industry professionals are convinced that the cryptocurrency sector will grow in the near future, following years of being practically ignored by traditional finance. Many hope that, thanks to Trump's support, this field could finally become institutionalized. A good portion of investors hopes that Trump will introduce – as he promised – more favorable regulations for cryptocurrencies in general, which would increase the business turnover for the entire sector. Not surprisingly, as soon as Trump was elected 47th president of the United States, the value of the most popular cryptocurrencies increased significantly. In this context, a few days before his inauguration at the White House (which traditionally takes place on January 20), Trump launched his own cryptocurrency, “$TRUMP”. The announcement was made while he was attending an industry event in Washington.
$TRUMP belongs to the so-called “meme coins,” cryptocurrencies tied to a meme, an Internet phenomenon (as in the case of "Hawk Tuah Girl"), or famous personalities – and today, it’s hard to find someone more talked about than the new president of the United States. Meme coins are digital products that many people invest in almost as a game, often without expertise in the field, which is why their value tends to fluctuate significantly. Being so volatile, this type of cryptocurrency is considered potentially riskier compared to traditional ones, as their value is not, for example, tied to other more stable digital currencies, which generally helps make assets less susceptible to fluctuations. Essentially, meme coins are more like collectibles than actual currencies. Moreover, although they use the same technology as traditional cryptocurrencies, their highly speculative nature often makes them a symbol of the high volatility of the cryptocurrency market – fueling doubts about the stability of the entire sector.
What's wrong with $TRUMP?
@aainvesting What is going on with Donald Trump’s meme coin!? This cannot be a coincidence! #Trumpmemecoin #trumpcoin #cryptonews #memecoin original sound - All About Investing
In recent years, despite numerous attempts to associate Trump’s image with a cryptocurrency, none of these initiatives had received his official endorsement. «We didn’t expect Trump’s meme coin. We expected a currency running on Musk’s X,» said Guido Maria Brera, a manager and writer specializing in finance. «We are witnessing the dawn of a new American government where science fiction has fully captured real imagination,» he added. Shortly after the announcement of $TRUMP, even the new First Lady created her own cryptocurrency, called “$MELANIA.” This move was interpreted as an opportunistic attempt to exploit the president’s supporters' enthusiasm to generate quick profits. The launch of the two cryptocurrencies sparked strong criticism within the industry: many accused Trump of prioritizing his own financial interests over the growth of the market, further fueling skepticism towards cryptocurrencies.
Indeed, the arrival of $TRUMP created an immediate stir within the sector, and just hours after the announcement, its value had skyrocketed – increasing by 600 percentage points. Trump’s cryptocurrency initially reached a total value of circulating units exceeding 8 billion dollars. However, the initial euphoria quickly faded when Melania Trump also launched her own cryptocurrency: according to many observers, this move revealed the speculative nature of both projects, primarily based on the enormous popularity of the U.S. president rather than solid financial foundations. The subsequent collapse in value of $TRUMP demonstrated how the cryptocurrency market is highly vulnerable to manipulation and speculation, further fueling investors' skepticism. The direct involvement of such an influential figure as Trump in such initiatives also raised serious questions about the sector’s integrity and the potential conflicts of interest, given the power the U.S. president holds in influencing the regulations governing the cryptocurrency market.