In a bold move that has sent waves through the cryptocurrency market, President-elect Donald Trump officially launched his meme coin, $TRUMP.
Despite the recent volatility of the coin, which has already seen significant fluctuations since its debut, it still maintains a substantial valuation of approximately $39 billion as of this past Monday.
The $TRUMP coin made headlines after Trump announced it as his “Official Trump Meme” coin on social media, sparking excitement among his supporters and investors alike.
The coin skyrocketed to just over $75 early Sunday but has since dropped to around $39, leading to a market capitalization that currently sits at $7.8 billion, according to data from CoinMarketCap.com.
However, its fully diluted valuation hovers around an impressive $38.8 billion.
$TRUMP and Bitcoin
Delving deeper into its backing, around 80% of the $TRUMP meme coin is reportedly controlled by Trump Organization affiliate CIC Digital, along with a collective entity known as Fight Fight Fight.
The situation turned interesting on Sunday when the former First Lady Melania Trump also launched her cryptocurrency, the $MELANIA coin.
It peaked at over $13 before settling near $5.20, giving it a valuation of about $5.2 billion.
Interestingly, the $TRUMP coin’s price appeared to dip around the same time $MELANIA was introduced into the market, highlighting the competitive nature of the burgeoning crypto space within the Trump brand.
This phenomenon casts doubt on whether multiple coins associated with the Trump name can coexist successfully.
As the crypto market reacts to these developments, Bitcoin, the pioneer of cryptocurrencies, has reached new heights.
Trading above $104,000 on Monday, it even peaked at an all-time high of $109,134.79 overnight.
Analysts have noted that Bitcoin’s value surged significantly in the days leading up to the inauguration, particularly following reports of potential executive orders from Trump regarding regulatory measures on cryptocurrencies.
On Friday, Bitcoin saw its price rise nearly to $106,000, thanks to speculations about a potential favorable approach from the upcoming administration.
Donald Trump and Crypto
Trump has positioned himself as a pro-crypto leader, promising a softer regulatory framework for Bitcoin and other digital currencies.
During his campaign, he hinted at creating a U.S. bitcoin strategic reserve—a move that could significantly impact the market.
His administration is expected to roll out executive actions related to cryptocurrency on his first day in office or shortly thereafter, raising anticipation among investors about the future of the crypto industry.
Amid this evolving landscape, the traditional stock market also feels the impact of Trump’s administration. Shares of Trump Media & Technology, which operates the social media platform Truth Social, have emerged as a sentiment indicator for investors.
Despite facing substantial losses and generating only modest revenue, the media company boasts a market cap of approximately $8.68 billion as of last Friday.
With Donald Trump as its majority owner, the performance of DJT stock has mirrored public interest in his political and financial ventures.
As the cryptocurrency and stock markets intertwine, a critical question arises: will the $TRUMP meme coin become the new barometer for Trump sentiment, or will both $TRUMP and DJT stock play their respective roles in measuring public interest and support?
The coming weeks will undoubtedly provide more clarity as market participants assess the implications of Trump’s entrance into the crypto realm.
Will the $TRUMP meme coin help further legitimize cryptocurrencies in the eyes of more conservative investors, or will it become another trend in an industry often characterized by volatility?
One thing is certain: with influencers like Trump at the helm, the narrative surrounding cryptocurrencies is bound to evolve, and investors are watching closely.