It remains unclear whether Trump’s memecoin will push crypto in the ‘right direction’.

The crypto industry has high hopes that US President Donald Trump will boost crypto adoption both in the US and globally. However, only time will tell if the newly launched Solana-based memecoin is a step in the right direction.

Trump's memecoin, Official Trump (TRUMP), was launched on January 17 and is up 10,643%, reaching $27.50 at press time, according to data from memecoin trading platform Moonshot.

Trump's memecoin has brought new users on board to crypto.

With Trump just days away from his inauguration as US president on January 20, there is speculation that crypto could be made a national priority on his first day in office.

Crypto exchange Swyftx lead analyst Pav Hundal told Cointelegraph that the strong reception of the TRUMP memecoin so far is a good sign, giving the industry a hint of what the next four years of the president's term may bring.

“Nobody wants to hear from the bears right now. Trump 2.0 is already a sugar rush and he hasn't even started his presidency,” Hundall said. He added:

“Solana wipes out the previous 24-hour decentralized exchange rate on the back of the Trump meme coin. Amazing.”

The launch of memecoin triggered a rally in its native token Solana (SOL), which led to an all-time high of $270.

Although TRUMP has shown how high and fast demand for crypto is, Hundel says the “true value” of a Trump presidency depends on the long-term environment it creates.

“Here we are on a sensible rule,” he said.

Meanwhile, other TRUMP tokens have attracted many new users to crypto, which may harm the industry in the long run.

This comes after doubts were first raised on Trump's social media, with some speculating that his account had been hacked.

Scott Melker, “Wolf of All Streets,” said in a Jan. 18 post that Trump's memecoin is good for crypto but “bad for humanity.” Melker added:

“Donald Trump could send millions of new people into space.”

Moonshot, the platform where Trump suggested his followers buy memecoin, has reported more than 200,000 new onchain users since the token's launch.

“It's a money grab for no reason, I'm not sure how anyone is going to object,” Melker said, adding that insiders would hold 80 percent of the offering when they started.

“Creating billions on steam,” Melker said.

There is a risk of 80% of tokens stock in one wallet.

According to Arkham Intelligence, assuming the wallet belonged to Trump, Mmecoin boosted Trump's fortune to $22 billion overnight.

On the flip side, others say this is a huge positive for token holders.

Crypto attorney Eric Ideas said in a Jan. 18 X-Post that if Trump actually owns 80% of the supply, he could make TRUMP Token one of the three major “safecoins” to hold.

“Most of the offerings are safe from being dragged down the street by someone interested in doing a good job of the coin,” he said.

It may not be the ‘right direction for crypto'

TradeZella founder Umar Ashraf said he doesn't believe Trump should have his own memecoin given his power, or is promoting his own memecoin.

“It's not the right direction for crypto,” Ashraf said.

Related: How did Donald Trump interact with crypto during his first term?

Moonwell Finance founder Luke Youngblood says it's “bad long-term” for the crypto industry.

However, Youngblood said in an open letter to Coinbase CEO Brian Armstrong that the crypto exchange should still list the token.

Trump supporters have argued that they want to buy the token regardless, and that Coinbase is a more accessible place to trade “where you don't get scammed.”

The memecoin launch coincided with the “Crypto Ball” honoring Trump, which brought together high-profile industry leaders such as MicroStrategy's Michael Saylor, Coinbase CEO Brian Armstrong, Winklevoss' Gemini twins and Trump's crypto boss David Sachs. and an artificial intelligence consultant.

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