Donald Trump’s foray into the crypto world with the Solana-based memecoin, “Official Trump” ($TRUMP), has ignited a wave of excitement and skepticism among industry experts and marketers. After a 185% price surge and a staggering $4 billion valuation, the token is raising questions about its long-term viability. While some see potential, others warn of the risks associated with such a volatile investment, raising concerns about a potential “pump and dump” scenario.
The $TRUMP token has created a buzz with 80% of its supply locked and a gradual unlock schedule in place. As the market remains focused on the coin’s price and its fundamentals ahead of Trump’s inauguration on January 20th, both supporters and critics are weighing in. Could $TRUMP be a bold investment, or is it just another fleeting trend in the world of crypto?
Trump's Pro-Crypto Stance and Past Ventures
Donald Trump has long been a proponent of the crypto industry, even using his platform to support various initiatives. Notably, he launched a series of NFT collections between 2022 and 2024, helping pave the way for his entry into digital assets. Additionally, Trump has backed a decentralized finance (DeFi) platform, World Liberty Financial ($WLFI), further solidifying his association with the growing crypto space.
After his oath-taking ceremony on January 20th, Trump is expected to issue an executive order focused on cryptocurrency. This could mark the beginning of a new chapter for American crypto regulations, potentially transforming the landscape and affecting the future of digital assets in the U.S.
The $TRUMP Token: Pump and Dump or a Lasting Trend?
The $TRUMP token has raised eyebrows in the crypto world, with some drawing comparisons to previous pump-and-dump situations in the political meme coin space. A notable example occurred during the election cycle, where political tokens like PolitiFi experienced significant price crashes, with some losing around 60% of their value in just a few hours.
As the $TRUMP token emerges just days before Trump’s swearing-in ceremony for a second term, market analysts are wondering whether a similar fate awaits the memecoin. Currently, 80% of the 1 billion $TRUMP tokens are locked, with plans to gradually unlock them over the next three years. This limited circulating supply of 200 million tokens, paired with the rising market cap of $4.05 billion and skyrocketing trading volume, has led to heightened speculation.
Analyst’s View: Suspicion and Parallels to Trump’s NFTs
Cygaar, a well-known software engineer with over 117,000 followers, has voiced his concerns over the launch of $TRUMP. In a recent statement, he pointed out that the token’s official website bears striking similarities to those used for the promotion of Trump’s NFT collections. The platform behind the $TRUMP coin, CIC Digital, is also the same entity behind Trump’s NFT ventures.
Cygaar expressed mixed feelings about the new memecoin, stating, "Either this is the greatest cyber heist of all time, or this is legitimate." His comments reflect the uncertainty surrounding the project’s authenticity and long-term viability.
Is $TRUMP a Smart Investment or a Risky Gamble?
Despite the surge in price and market capitalization, experts remain divided on the token’s future. While some view it as a lucrative opportunity, others warn that it may be too risky to invest in, given the potential for manipulation and volatility.
As $TRUMP continues to make waves in the crypto world, investors are urged to tread carefully and closely monitor the situation. With the gradual unlocking of tokens and the upcoming executive order, the coin could either thrive or collapse in the coming months, and only time will tell whether it’s a legitimate, long-term investment or a passing trend.
January 2025, Cryptoniteuae