Today, Trump’s new joke coin is doing very well and other tokens are also doing well.
Reuters, January 20, Paris and Singapore: Monday, the market value of U.S. President Donald Trump’s new crypto token rose to more than $10 billion. At the same time, excitement about his crypto-friendly government helped bitcoin briefly reach a new high.
Trump’s so-called “memecoin” went from less than $10 on Saturday morning to as high as $74.59 before losing some of its value on Monday. It was released on Friday night. The $TRUMP token, which has been criticized by ethics experts, was last selling at $33.88, according to CoinGecko, a website that tracks cryptocurrency prices.
World Liberty Financial, a different cryptocurrency project connected to Trump, also said on Monday that it had finished its initial token sale and raised $300 million. It plans to issue more tokens in the future.
Trump’s crypto interests are growing at a time when his administration is widely expected to usher in a “golden age” for cryptocurrencies. This is in stark contrast to the governmental scrutiny the industry faced under former President Joe Biden.
BTC, the biggest cryptocurrency in the world, set a new high of $109,071 on the day Trump was sworn in as 47th U.S. President. However, it lost some of its value and was last selling at $101,867.40.
“The launch of the TRUMP and MELANIA cryptocurrencies just before the inauguration added to the popularity of the cryptocurrency market in the last few hours,” said Grzegorz Drozdz, a market analyst at Conotoxia Ltd.
There are cryptocurrencies called Trump and Melania. The Melania cryptocurrency was released on Sunday. They were made on the Solana blockchain.
Over the weekend, the value of Solana’s coin also went up. On Sunday, it reached an all-time high of $294.33.
“I think in the short term there’s a chance this could be a sell-the-news event,” said Matthew Dibb, chief investment officer at Astronaut Capital, a crypto asset manager. He also said that crypto investors were expecting Trump to take some action on his first day in office.
“Bitcoin has already gone down… More instability is likely to happen here, and we expect a selloff.
On Friday, Trump’s crypto token went on sale for less than $10, but it quickly went up in value and reached a high point of $72.62 on Sunday. It went down in price on Monday, from $52.15 to around $30 by the end of the day.
The website for Trump coin says that eighty percent of its pieces are owned by CIC Digital, a company connected to Trump’s business, and another company called Fight, Fight, Fight.
According to the notice, the coins are “an expression of support for and engagement with the ideals and beliefs embodied by the symbol ‘$TRUMP.'” They are not insurance or investments, it says.
People were worried about ethics and conflicts of interest when World Liberty Financial opened just two months before the U.S. election in November. Even people who work in the cryptocurrency business were worried when Trump’s “memecoin” came out on Friday night. A lot of important people in Trump’s government and inner circle are connected to the cryptocurrency business.
“It’s easy to write this off as just another Trump show,” said Justin D’Anethan, a Hong Kong-based independent crypto analyst. “The launch of the official Trump token opens up a Pandora’s box of ethical and regulatory questions.”
This month, the Trump Organization said that when the president moved into the White House, he would give his children daily control of his multibillion-dollar real estate, hotel, golf, media, and license businesses. Forbes says Trump’s net worth is $6.7 billion, but that doesn’t include the money he makes from his crypto businesses.
THESE SPECULATIVE ASSETS
In the past few months, crypto prices have gone through the roof because people are looking forward to executive orders and other policy moves that could start a big change in U.S. cryptocurrency policy. However, Trump did not announce any new policies on Monday, which is what many people in the industry had hoped would happen.
“The market has some great expectations about a bitcoin strategic reserve and a loosening of regulations around digital assets, but it’s more likely these developments will be drip-fed over a series of months rather than days,” Dibb said.
Some experts were worried about the huge rise in the prices of new coins.
“Meme cryptocurrencies, like these, are prone to large fluctuations and we generally consider them as speculative assets,” Drozdz told Conotoxia.
That Trump’s coin brought digital assets into politics “blurs the lines between governance, profit, and influence,” D’Anethan said.
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