Since its launch, Trump Coin has experienced significant volatility, and its future direction is influenced by various factors. Below is the relevant analysis:
Favorable factors
- Trump's political influence: Trump still has strong appeal within the Republican Party and among some segments of the public. If he promotes policies favorable to cryptocurrency during his term or continues to support Trump Coin on social media platforms, it may attract his supporters and speculators to buy in the short term, driving up the coin's price.
- Market speculation sentiment: The cryptocurrency market is characterized by a strong speculative atmosphere. As a highly topical meme coin, Trump Coin easily attracts investors seeking high risk and high returns. When market speculation sentiment is ignited, a large influx of capital may cause prices to rise rapidly.
- Industry trend influence: If the entire cryptocurrency market enters an upward cycle, with significant price increases in mainstream cryptocurrencies like Bitcoin, market liquidity may increase, risk appetite may rise, and Trump Coin could rise due to the overall industry trend.
Unfavorable factors
- Regulatory risk: The issuance of Trump Coin has sparked discussions about various regulatory issues. Regulatory bodies such as the U.S. Securities and Exchange Commission may strengthen oversight of it and similar cryptocurrencies. If strict regulatory policies are enacted, such as trading restrictions or compliance requirements, it may lead to market panic, mass sell-offs by investors, and a sharp price drop.
- Lack of value support: Trump Coin is a typical "air coin" with no actual application scenarios, underlying assets, or technological innovations to support it. Its price is difficult to maintain at a high level in the long term and may eventually decline due to value correction.
- Large token unlock impact: Trump's group's affiliates control 80% of Trump Coin, which will gradually be unlocked and put on the market over the next three years. With a significant increase in market supply due to a large number of tokens being released, if there isn't enough demand to absorb this supply, the price may be severely pressured.
- Negative public opinion impact: Trump's issuance of the coin has sparked controversy and criticism, such as being accused of "abusing power for personal gain" and "screwing over investors". This negative public sentiment may reduce investor confidence in Trump Coin, leading to investor exit and affecting the coin's price.