Trump issues meme coin $TRUMP, causing market upheaval
On January 18, 2025, U.S. President Donald Trump officially announced the launch of a meme coin named after himself, $TRUMP, on his social media platform Truth Social. In the announcement, he stated: "My new official Trump meme coin has been launched. Buy $TRUMP now!"
When asked about his understanding of the coin, Trump responded: "I don't know if it will be profitable, I don't know much about it, only that it is very successful." This statement sparked widespread attention and skepticism from the market and media.
Market performance of $TRUMP coin:
According to reports, within just one hour of its launch, the market capitalization of $TRUMP coin quickly surpassed $3 billion, attracting a large number of investors. The next day, the fully diluted market capitalization of $TRUMP coin even briefly exceeded $80 billion. However, with market volatility, the price of the coin then experienced drastic fluctuations.
Criticism within the industry:
The issuance of the coin by Trump and his wife Melania has sparked intense controversy in the cryptocurrency field. Many industry insiders have pointed out that this move could damage the overall credibility of the crypto market and attract further attention from regulatory bodies. Additionally, Trump's extremely limited understanding of the coin he issued has raised doubts about his motives and sense of responsibility.
A cryptocurrency industry analyst commented: "This is a highly speculative act, perhaps more about promoting a personal image than truly advancing the development of cryptocurrency technology."
More experts are concerned that this behavior could lead to excessive hype among retail investors, ultimately creating an asset bubble that would have deeper negative impacts on the market.
Potential impact of meme coins:
Although the launch of $TRUMP coin has injected some liquidity into the market in the short term, its speculative nature and Trump's own words and actions may lead more people to doubt the cryptocurrency market, further triggering intervention and scrutiny from regulatory agencies.