Over the weekend, US President-elect Donald Trump took the crypto business by storm with an surprising launch. Trump introduced on social media he was launching the official TRUMP memecoin on the Solana blockchain final Friday, kickstarting a multi-billion three-day frenzy that sparked heavy neighborhood backlash.
Crypto Market On Its ‘Memecoin Period’
Ki Younger Ju, founder and CEO of CryptoQuant, shared his ideas on the weekend frenzy, asserting that “Trump opened the Period of Memecoins.” In keeping with the X put up, “monetary markets have at all times been about chasing memes,” and following tendencies “is nothing new” for monetary traders.
Ju identified that the rise of the Web and social media has made spreading concepts quicker and enabled them to succeed in a wider viewers. He additionally highlighted crypto exchanges had already opened the door to “an period of retail investing,” by which individuals take a extra hands-on method as an alternative of “parking their cash in banks or index funds.”
CryptoQuant CEO weighs in on Trump memecoin frenzy. Supply: Ki Younger Ju on X
In consequence, traders who lack experience comply with tendencies, take heed to influencers, and be taught from what others are doing. “It’s unlikely retail traders will immediately get smarter about investing, and with out authorities rules, the herding habits round fashionable key phrases received’t cease,” he said.
The CEO considers that “the Trump administration appears much less eager about regulating this phenomenon and extra inclined to reap the benefits of it,” suggesting that their method is “if it’s inevitable, use them.”
Furthermore, he added that celeb tokens are simply one of many varieties memecoins can take, asserting that “the underlying actuality of economic markets behaving like memes isn’t going away, so it’s price contemplating the way to benefit from it.”
Ju believes that the upcoming president is “seemingly to make use of” his token holders as a “highly effective neighborhood base for collective motion,” including that the token’s worth will rely on what Trump does and is unlikely to go to zero until the president pulls the rug on his “fervent fan base.”
If a star coin issuer avoids rug-pulling and takes accountability for his or her gross sales, it’s not as dangerous as you may suppose. Even Bitcoin had its justifiable share of pyramid scheme promoters within the early days, promoting to aged traders. Now, with its large value rise, those self same scammers began being known as “visionaries.”
He concluded that whatever the neighborhood’s emotions, the continued wave is “unstoppable—at the very least till 2028,” suggesting that traders ought to put together for the following wave.
Trump Token Frenzy To Proceed
Regardless of traders’ preliminary issues a couple of hacking rip-off, Trump’s official token skilled a meteoric rise just a few hours after launching, reaching a market capitalization of $6 billion by Saturday morning.
All through the next day, the US President’s official memecoin surged to an all-time excessive (ATH) of $75 and a market capitalization of $15 billion. The token eclipsed the crypto market, with only some cryptocurrencies following its lead. Amid the weekend rally, Bitcoin (BTC) turned the $102,000 resistance into help, whereas Solana (SOL) hit a brand new ATH of $270.
Nonetheless, the surprising launch was additionally met with heavy criticism from the neighborhood. Crypto traders expressed their issues and discontent on X, with some members suggesting the token may hurt the business’s status.
In the meantime, others known as out the upcoming President’s memecoin enterprise a “grift.” As reported by Bitcoinist, in style web investigator Coffeezilla expressed his skepticism on social media. “Dropping TRUMP memecoin 2 days earlier than changing into president is nasty work,” he said, including that “new SEC/DOJ ensures no prosecution.”
The criticism grew on Sunday afternoon when incoming First Woman Melania Trump introduced the launch of her memecoin, MELANIA, on Solana. After the launch, the market noticed a 6% correction, with BTC briefly dropping beneath $100,000 and TRUMP nosediving 30% in an hour from its ATH value to $49.
Nevertheless, the market has began to get well amid the Inauguration Day rally. The flagship crypto hit a brand new ATH of $109,000 earlier earlier than retracing slightly below the earlier ATH vary. Some analysts anticipate at this time to be “very risky in each instructions” however stay optimistic in regards to the coming months with the brand new crypto-friendly administration.
Bitcoin's efficiency within the one-week chart. Supply: BTCUSDT on TradingView
Featured Picture from Unsplash.com, Chart from TradingView.com
