Trump’s New Meme Coin and Crypto Token Soar on His First Day in Office
-
Loading... - Brian Clarke
- 21 Jan 2025
- 19 Views
- 0 Like
- 0 Comment
On the first day of his presidency, Donald Trump announced a significant foray into the cryptocurrency market, with the launch of World Liberty Financial (WLF) and a new meme coin, $TRUMP. These ventures have quickly gained traction, raising $1 billion in token sales and pushing the market value of the $TRUMP coin to over $10 billion.
WLF, which was promoted by Trump, his sons, and special envoy Steve Witkoff, was launched just two months before the U.S. election. The announcement of its success coincided with Trump’s inauguration, marking a stark contrast to the regulatory scrutiny faced by the crypto industry under former President Joe Biden. Trump has promised to usher in a “golden age” for cryptocurrencies, appealing to a growing base of crypto enthusiasts.
The $TRUMP meme coin was launched during the first-ever Crypto Ball in Washington, D.C., on the eve of the inauguration. The coin experienced a dramatic surge, rising from less than $10 to a peak of $74.59 before settling around $42.20 later in the day, giving it a market cap of approximately $8.5 billion.
The rapid rise of Trump-related crypto ventures has raised ethical and regulatory questions. Critics, including independent crypto analyst Justin D’Anethan, have expressed concerns about the implications of a political figure launching a cryptocurrency. “While it’s tempting to dismiss this as just another Trump spectacle, the launch of the official Trump token opens up a Pandora’s box of ethical and regulatory questions,” he stated.
Cryptocurrency lawyer Preston Byrne predicted potential legal challenges, suggesting that the launch could lead to civil lawsuits. He noted that the memecoin launch might be viewed as a significant political misstep.
The excitement surrounding the new meme coins has contributed to a broader rally in cryptocurrency prices. Bitcoin, for instance, hit $104,031 on inauguration day, reflecting a nearly 7 percent increase for the month. The launch of the $TRUMP and $MELANIA coins, both created on the Solana blockchain, has further fueled interest in the crypto market.
Trump’s administration has indicated that he would delegate the management of his extensive business portfolio to his children, allowing him to focus on his presidential duties while still engaging in the crypto space.
The introduction of Trump’s cryptocurrency ventures has blurred the lines between political influence and financial speculation. Analysts have raised concerns about the implications of public figures wielding significant sway in speculative markets. D’Anethan remarked, “Should public figures, especially those with such political clout, wield this kind of sway in speculative markets? That’s a question regulators are unlikely to ignore.”
The websites for both the $TRUMP and $MELANIA coins refer to them as “fungible crypto assets” rather than cryptocurrencies, which may be an attempt to navigate regulatory scrutiny.
Trump’s entry into the cryptocurrency market on his first day in office has generated significant buzz and raised important questions about the intersection of politics and finance. As the market reacts to these developments, the potential for legal challenges and regulatory scrutiny looms large. The success of these ventures could reshape the landscape of cryptocurrency in the U.S., particularly if Trump follows through on his promise to promote a more favorable environment for digital assets.
