The launch of President Donald Trump’s memecoin, known as TRUMP, has caused quite a stir in the cryptocurrency world. The digital asset analytics firm CryptoQuant’s CEO, Ki Young Ju, has shared insights into what gives this memecoin its value.
At the time of writing, TRUMP is trading at $40.47, down nearly 40% in the past 24 hours but up more than 518% since its launch on Friday. With a market cap exceeding $8.1 billion, it has quickly become a top-30 crypto asset by market cap.
Young Ju highlights that retail traders often follow trends and chase memes in the financial markets. He explains that the value of Trump’s memecoin lies in the community base it creates. Unlike traditional securities that pool investments for productive activities, memecoins like TRUMP rely on the influence and actions of their community members.
The CEO emphasizes that the value of a memecoin is tied to whether its community acts in ways that benefit society. A community with goodwill can turn a meme coin into a valuable asset, while the involvement of a cult or terrorist group could have dangerous consequences.
Looking ahead, Young Ju predicts that more memecoins will be launched under Trump’s administration. He believes that the embrace of free markets over regulated markets will lead to experiments with meme-driven communities in the crypto space in the coming years. This wave of memecoins is expected to continue until 2028.
In conclusion, the rise of Trump’s memecoin showcases the growing influence of meme-driven communities in the cryptocurrency world. As the value of these coins hinges on community actions, it will be interesting to see how TRUMP and future memecoins evolve under Trump’s administration.
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(Image credit: Midjourney)