Donald Trump’s recent foray into the world of cryptocurrencies with his Solana-based memecoin, “Official Trump” ($TRUMP), has caused quite a stir among marketers. The coin saw a staggering 185% price spike and reached a valuation of $4 billion, leaving experts divided on its long-term potential amidst concerns of a possible pump and dump scheme.
With 80% of the tokens currently locked and a gradual unlocking schedule in place, the market is closely monitoring the price and underlying fundamentals of the $TRUMP token leading up to Trump’s upcoming inauguration. While some supporters see it as a promising investment opportunity, critics draw parallels to previous instances of volatile political tokens. The question remains – is $TRUMP a worthwhile investment or just a passing trend?
TRUMP’s involvement in the crypto space is not new, as he has shown support for digital assets over the years. He launched his own line of NFT collections between 2022 and 2024 and has also backed a DeFi platform called World Liberty Financial ($WLFI). Following his inauguration, Trump is expected to issue an executive order related to cryptocurrencies, potentially signaling significant changes in the American crypto landscape.
However, concerns have been raised about the possibility of a pump and dump scenario surrounding the TRUMP token. The cryptocurrency market previously witnessed a similar situation during the election day, with political memecoins experiencing a sharp price crash and losing around 60% of their value within hours. As the $TRUMP token enters the market just days before Trump’s inauguration, marketers fear a repeat of the election day volatility.
Of the 1 billion TRUMP coins in circulation, 80% are currently locked and will gradually be released over a three-year period. This limited circulating supply of 200 million tokens has pushed the market cap to $4.05 billion, with trading volume exceeding $3 billion. Analysts are closely monitoring these developments to gauge the coin’s potential performance in the market.
Cygaar, a prominent software engineer with a large following, has pointed out similarities between the official TRUMP coin website and Trump’s previous NFT site. The website, credited to CIC Digital, bears a striking resemblance to the platform used to promote Trump’s NFTs, raising suspicions among some observers. Cygaar has raised the question of whether the TRUMP memecoin launch is a legitimate venture or a potential cyber heist.
As the crypto community awaits Trump’s inauguration and the subsequent executive order on cryptocurrencies, the future of the TRUMP token hangs in the balance. Whether it will emerge as a legitimate investment opportunity or succumb to the pitfalls of a pump and dump scheme remains to be seen. Only time will tell how this latest venture into the crypto world by Donald Trump will unfold.