I started it, that’s all I know
Donald Trump's TRUMP memecoin has taken the crypto world by storm by becoming the fastest growing memecoin in history. Launched on January 17, just days before its inauguration, the Solana-based token quickly reached $13 billion in market capitalization over the weekend. However, it fell to $8 billion after a 50 percent drop following the launch of rival memecoin by First Lady Melania Trump.
In an interview with reporters, Trump admitted that he was not deeply involved in the project, saying, “I don't know much about the project other than I started it,” but credited it with its success.
When told about the multi-billion dollar price tag, he said, “$8 billion? That's peanuts to these guys, citing tech leaders like SoftBank's Masayoshi Son and OpenAI's Sam Altman who attended the event.
However, many think this is Trump's strategy to recover his campaign spending and this note mania will disappear once crypto regulations are issued.
National Crypto Agenda
Moreover, many critics have criticized Trump's meme mania. Since its launch, the token has come under fire with no clear crypto rules, investing in memes is like gambling. The Trump administration is reportedly planning to make crypto a national policy priority. To lead these efforts, David Sachs has been appointed as the administration's crypto czar.
Despite its success, TRUMP memecoin may complicate further efforts to approve crypto legislation. Analysts warn that the relationship with Trump could increase political divisions by delaying progress on critical regulations. TD Cowen notes that investigations into token insider ownership and market influence could further delay bilateral deals.
Even multi-billionaire and crypto investor Mark Cuban believes that TRUMP coins are overvalued and that investing in such projects without clear rules would be fraudulent and undermine the credibility of crypto.
On the subject of regulations, the Washington Post recently reported that one of Trump's executive orders would repeal the controversial SEC crypto accounting regulation SAB 121.
EXCHANGE LIST TRUMP
TRUMP memecoin is gaining popularity on platforms like Coinbase and Robinhood, trading at around $42, up 8.7% in the last 24 hours. Trump's changing rhetoric and apparent lack of interest in memecoins is giving crypto investors a chill. Critics say the token's popularity could give crypto a perception as a speculative coin and gambling could take over its real-world use.
The memecoin launch is clashing with major tech and financial developments, including the $500 billion AI infrastructure project OpenAI, Oracle and SoftBank. While the TRUMP token has brought attention to the crypto space, its long-term effects on the industry are uncertain.
