Donald Trump, the former U.S. president, has stirred the cryptocurrency market with the meme coin named after him, but the strong price volatility came after a surprising statement: 'I don't know much about it other than I launched it.'
Strong fluctuations right after the statement
• The price of TRUMP coin peaked at $48.18 within 24 hours before dropping 16% to $40.29 right after Trump's comments at a meeting with technology leaders.
• Quick recovery: Within an hour, the price rebounded by 7.5%, reaching $43.37 with a market capitalization of up to $8.7 billion.
Trump and his indifference to the meme coin named after him
• When asked about the $8 billion value of the token, Trump downplayed it, calling it 'a small matter' compared to larger technology investments, especially as he was speaking alongside leaders from #SoftBank , #OpenAI , and #Oracle .
• He emphasized: 'I hear it's very successful, but I haven't checked.'
Competition from First Lady Melania Trump
• Melania Trump, Trump's wife, launched her own meme coin on Sunday, causing TRUMP coin's price to plummet 50% as investors sold off.
• The crypto community is fiercely debating what these meme coins mean for the industry.
Concerns from experts
• Research firm TD Cowen warns that the emergence of these meme coins could hinder the passage of cryptocurrency bills in the U.S., especially as suspicions of insider trading increase.
• An anonymous investor turned $1 million into $116 million thanks to trades deemed 'perfectly timed.'
Listed on major exchanges
Despite Trump's indifference, TRUMP coin has been listed on major platforms like Coinbase and Robinhood, maintaining a market cap of billions and continuing to attract market attention.
Conclusion
The strong volatility of TRUMP coin highlights the allure of meme coins within the cryptocurrency community, but it also underscores the associated risks and concerns. Trump's statement of 'not knowing much' was not only surprising but also added to the unpredictability of this market.