$TRUMP Coin May Have Temporarily Hurt Crypto, but All Is Not Lost
Short-term price action doesn't tell the whole story
President Donald Trump’s recent launch of the $TRUMP meme coin has sparked significant controversy and backlash — not just from his critics but but from within the crypto community too. The coin, introduced just days before his inauguration, quickly gained traction in the alt-coin market, with its value soaring from $10 to over $70 within the first 48 hours.
The $TRUMP coin, along with a similar $MELANIA coin launched by First Lady Melania Trump days later, has been marketed as a celebration of their MAGA movement and a symbol of winning. The rapid rise and subsequent volatility of these coins (extreme, even by the standards of your average meme coin) have raised eyebrows and led to widespread criticism.
Most notably, many of the critics have been from within the crypto community — those who had appeared most enthusiastic about Trump’s second term in office and the prospect of crypto-friendly policies that he’d made on the campaign trail.
So is the Trump-pump for Bitcoin and other cryptocurrencies over before it had even got going? Has one ill-considered meme coin launch killed the golden goose?
What the critics are saying
Critics argue that the $TRUMP meme coin is essentially a grift designed to raise money for Trump and his associates. The Trump Organization holds a significant portion of the coin’s supply, giving them substantial control over its price and the potential to profit immensely based on gains in its price.
This effective centralization has led to concerns about market manipulation and the ethical implications of a sitting president launching a personal cryptocurrency that could be used and abused for personal enrichment. Additionally, the anonymous and unregulated nature of meme coins like $TRUMP has raised fears that they could be exploited for bribery and corruption on the part of those who are able to accumulate large holdings.
Legal experts and elected officials have voiced concerns that these coins could serve as a vehicle for financial benefits from foreign adversaries, potentially prioritizing Trump’s personal interests over those of the American people.
The backlash from the crypto community has been particularly vocal. Many industry insiders worry that the launch of the $TRUMP meme coin undermines the legitimacy of the cryptocurrency sector, which has been striving for greater acceptance and regulation. By associating himself so closely with meme coins, Trump risks damaging the reputation of the industry and casting a shadow over any regulatory reforms he might introduce.
The move has also been criticized as a cash grab that exploits Trump’s brand without offering any real value to the crypto market. As the controversy continues to unfold, it remains to be seen how this will impact Trump’s presidency and the broader cryptocurrency landscape.
So have the events of the last few days really given cause for shattered dreams amongst the crypto community?
All may not be lost
While commentators and critics seize upon the opportunity to call an own-goal by POTUS 47 in launching $TRUMP and undermining the wider credibility of Bitcoin and crypto more generally, there are undeniable signs of a wave of interest from new crypto investors and speculators dipping their toes for the first time.
Google searches for ‘how to buy crypto’ are at an all-time high volume after a long period of stagnation, as are searches containing the term ‘Bitcoin’
Mentions of Bitcoin on Twitter doubled in the second week of January, and doubled again the following week
The Coinbase app rose to position #21 on the Apple App Store on Monday January 20, up from #200 last week. At the time of writing, this has been overtaken by the Crypto.com app which allows the trading of $TRUMP as well as better known coins
The Phantom Wallet app, most popular for tokens on the Solana Blockchain, now finds itself at position #51 in the Apple App Store, up from #357 last week. $TRUMP tokens, minted on Solana are likely responsible for this.
There may be a certain amount of confirmation bias playing a part, as crypto enthusiasts look for signs that all is not lost. While the political ramifications of Trumps latest grift play out and his critics zero in on his poorly-timed launch of a meme coin, the above examples illustrate that there are plenty of reasons to think that the market for crypto remains alive and well, and more and more people are being drawn to it daily.
How about Bitcoin ?
Sentiment amongst Bitcoin-maxis has been mixed since Trump’s inauguration. The price pumped to a new all time high above $109,000 in the minutes before his swearing in, but after the initial excitement of the moment there appeared to be a sell-off. It was as if Bitcoiners anticipated that the first order of business in his second term would be to follow through on promises made regarding crypto.
Instead, we saw the rambling, monotone inauguration speech that brought topics such as the border crisis, the ‘weaponised’ justice system and similar MAGA-centric points of policy to the fore. With hindsight, it was naive for Bitcoiners to expect anything else, and if there were any dampening of the price of BTC based on this factor then it was short lived. The price in the days since has recovered and has rallied at times to near previous all-time highs.
In summary, if there’s one lesson we can learn from the early days of a second Trump presidency as far as crypto is concerned, is that it will certainly be a rollercoaster ride.
I’m strapped in and ready to go.
Note: This article is for informational purposes only. It should not be considered Financial or Legal Advice. Consult a financial professional before making any major financial decisions.