1. Background and market reaction

1. Trump’s political influence

As the former president of the United States, Trump has a high political influence and a wide fan base. His remarks and actions often attract widespread attention and strong reactions from the market. On January 18, 2025, Trump announced on his social media platform Truth Social that he would launch his personal Meme token TRUMP. Users need to visit the website with the domain name "GetTrumpMemes.com" to purchase the token. Then at 10:44, Trump again posted the same content on his personal account X. This time, the market has basically ruled out the possibility of theft.

2. Market performance

The market capitalization of the TRUMP token quickly reached $8 billion shortly after its release, with trading volume nearing $1 billion, achieving an astonishing 300% value surge within the first three minutes of trading. As of January 18, 2025, the market capitalization of the TRUMP token has exceeded $4 billion, making it the fourth largest Meme token by market capitalization.

II. Long-term impacts on the primary market

1. Investment sentiment and market confidence

Trump's announcement greatly enhanced market confidence in cryptocurrencies, especially in tokens associated with Trump. This positive market sentiment not only drove up the price of the TRUMP token but may also boost the market performance of other cryptocurrencies. Investor optimism towards cryptocurrencies may persist, driving more funds into the primary market.

2. Regulatory environment changes

Trump has promised to fire current SEC Chairman Gary Gensler and replace him with a 'regulator who understands crypto.' This change means that the regulatory environment for the U.S. crypto industry may become more lenient and friendly. Currently, the U.S. cryptocurrency industry faces high compliance pressures, and if regulatory policies become more open, it will help reduce corporate compliance costs and attract more crypto projects to develop in the U.S., potentially driving more capital and talent into the U.S. crypto market, further enhancing the competitiveness of the U.S. crypto industry.

3. Participation of institutional investors

Trump's policies may create a more favorable environment for institutional participants. Companies like BlackRock and Fidelity can significantly expand their crypto portfolios. Banks and payment providers may increase blockchain-based service products, such as cross-border payments and stablecoin issuance. This will bring more liquidity, enhance market maturity, and promote the compliance and credibility of crypto assets.

4. Bitcoin mining and related industries returning to the U.S.

Trump's mention of the vision of 'Bitcoin made in America' indicates that he may promote the return of the Bitcoin mining industry to the U.S., further reducing dependence on other countries, especially major mining countries like China. With more lenient energy policies and tax incentives, the mining infrastructure in the U.S. may expand rapidly, making the U.S. one of the global leaders in Bitcoin computing power. As mining activities increase, upstream industries such as mining equipment and power infrastructure will benefit, thereby driving job growth and technological innovation.

5. Changes in the global cryptocurrency industry competitive landscape

If Trump incorporates the crypto industry into his economic development strategy, the U.S. policy stance may influence the attitudes of other countries. If the U.S. becomes a 'Bitcoin superpower,' other countries may be forced to accelerate the formulation of cryptocurrency policies to avoid falling behind in the global crypto economic landscape. This international competition will drive global policy reforms, and the overall development speed of the cryptocurrency and blockchain industry may further accelerate.

III. Potential risks and challenges

1. Regulatory uncertainty

Although Trump's stance seems to support cryptocurrencies, the actual implementation of new regulations may face delays or political resistance. The transition period between regulatory frameworks may lead to increased volatility, especially for altcoins.

2. Market volatility

The price volatility of the TRUMP token is extremely severe, and investors need to have a high risk tolerance. The uncertainty of market sentiment and political events may lead to significant price fluctuations.

3. Geopolitical tensions

Trump's foreign policy may introduce new sanctions or trade wars, indirectly affecting the cryptocurrency market through global financial instability.

IV. Conclusion

The emergence and rapid rise of the TRUMP token is primarily due to Trump's political influence, the enthusiasm in the cryptocurrency market, and Trump's support for cryptocurrencies. Although the market outlook is broad, investors also need to be aware of potential risks such as price volatility, policy risks, and market competition. It is recommended that investors exercise caution in short-term investments, manage their positions reasonably, and focus on the long-term development and technological progress of the project to adjust investment strategies in a timely manner.