The Announcement and Market Reaction

The announcement of the $TRUMP memecoin. Source: Donald J. Trump via X

On January 18, Trump shared an enthusiastic message on his X account, declaring, “My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING! Join my very special Trump community. GET YOUR TRUMP NOW.” The same message was also shared on his Truth Social account, with a link to a website that closely resembled those used for his previous NFT collections.

The Trump Meme coin, Source: BNC

The $TRUMP token, which was newly minted, saw immediate attention, trading at $30.35 and achieving a market capitalization of $8.3 billion within hours of its launch.

Concerns Over the Token’s Legitimacy

This unexpected move has sparked a range of reactions from the crypto community, with many questioning whether the posts are genuine or the result of a hack. But folks, it was not a hack, it was a real launch. Is Trump a crypto hero or villain?

Crypto industry leaders initially questioned whether the $TRUMP launch announcement posts were authentic or a result of a hack. Source: Max via X

The crypto community was skeptical of the meme coin promoted on Trump’s social media. Source: JRNY Crypto via X

Authenticity of the Launch

We now know the launch was authentic, given the involvement of CIC Digital, the official licensee behind Trump’s NFT projects. The $TRUMP token website bears similarities to the sites that promoted Trump’s previous NFT collections.

However, there are several red flags regarding the transparency of the project. CIC Digital holds 80% of the token’s supply, which is subject to a three-year unlocking period, raising concerns about potential market manipulation and the lack of decentralization typically associated with successful cryptocurrencies.

Trump Meme Coin Allocation, Source: Trump

Impact on the Solana Blockchain

Solana (SOL) price is still holding above the psychological support at $200. Source:Brave New Coin

The sudden surge in $TRUMP’s market cap has had ripple effects on the broader crypto market, particularly on the Solana blockchain. The price of Solana (SOL) rose by 17.17% to $253, as the launch of the token generated widespread interest. Solana has been effectively crowned by the new Crypto King. Solana price predictions now suggest SOL will outperform ETH in 2025 as a result.

Trump and Crypto: A Volatile Intersection of Politics and Crypto

This is not the first time Trump has made headlines with crypto. Earlier, his administration took a more conservative stance on cryptocurrency regulation, making the potential second term with Trump even more ambiguous for the market. Also, his earlier involvement in the NFT space—the sale of Trump-themed digital trading cards—brought into question how seriously he takes cryptocurrencies.

The launch of $TRUMP raises a bevy of questions about the future of cryptocurrency in the political sphere. With the inauguration just around the corner, the crypto community is on edge, waiting for more details to see if the memecoin represents a legitimate effort by Trump’s team or another speculative gimmick.

As the situation unfolds, one thing is clear: the intersection of politics and cryptocurrency will continue to be a source of both intrigue and uncertainty. Whether this move will help solidify Trump’s position as a crypto supporter or damage his credibility remains to be seen, but it serves as a reminder of the volatile and often unpredictable nature of the digital currency market. The crypto community will likely be watching closely for any further announcements or clarifications regarding the $TRUMP token in the coming days.