Over the weekend, US President-elect Donald Trump took the crypto trade 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 Era’
Ki Younger Ju, founder and CEO of CryptoQuant, shared his ideas on the weekend frenzy, asserting that “Trump opened the Era of Memecoins.” Based on the X put up, “financial markets have always been about chasing memes,” and following developments “is nothing new” for monetary buyers.
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 era of retail investing,” wherein individuals take a extra hands-on strategy as a substitute of “parking their money in banks or index funds.”
CryptoQuant CEO weighs in on Trump memecoin frenzy. Supply: Ki Younger Ju on X
Because of this, buyers who lack experience observe developments, hearken to influencers, and study from what others are doing. “It’s unlikely retail investors will suddenly get smarter about investing, and without government regulations, the herding behavior around trendy keywords won’t stop,” he acknowledged.
The CEO considers that “the Trump administration seems less interested in regulating this phenomenon and more inclined to take advantage of it,” suggesting that their strategy is “if it’s inevitable, use them.”
Furthermore, he added that celeb tokens are simply one of many types memecoins can take, asserting that “the underlying reality of financial markets behaving like memes isn’t going away, so it’s worth considering how to make the most of it.”
Ju believes that the upcoming president is “likely to use” his token holders as a “powerful community base for collective action,” 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 duty for his or her gross sales, it’s not as dangerous as you would possibly suppose. Even Bitcoin had its fair proportion of pyramid scheme promoters within the early days, promoting to aged buyers. Now, with its large value rise, those self same scammers began being known as “visionaries.”
He concluded that whatever the neighborhood’s emotions, the continuing wave is “unstoppable—at least until 2028,” suggesting that buyers ought to put together for the following wave.
Trump Token Frenzy To Proceed
Regardless of buyers’ preliminary issues a few hacking rip-off, Trump’s official token skilled a meteoric rise a number of 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 just a few 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 buyers expressed their issues and discontent on X, with some members suggesting the token might hurt the trade’s status.
In the meantime, others known as out the upcoming President’s memecoin enterprise a “grift.” As reported by Bitcoinist, widespread web investigator Coffeezilla expressed his skepticism on social media. “Dropping TRUMP memecoin 2 days before becoming president is nasty work,” he acknowledged, including that “new SEC/DOJ guarantees 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.
Nonetheless, the market has began to recuperate 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 right now to be “very volatile in both directions” however stay optimistic concerning 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
