The launch of the $TRUMP token by President Donald Trump has raised concerns among cryptocurrency investors. The main reasons for these concerns include:

Volatility and Speculation

Upon its launch, $TRUMP experienced a spectacular rise, reaching a market cap of $15 billion, before losing nearly half of its value in a short period of time. This extreme volatility has led to rapid gains for some, but also significant losses for others, illustrating the highly speculative nature of this type of cryptocurrency. 

Proliferation of fraudulent copies

The initial success of $TRUMP has led to the creation of over 700 tokens imitating Trump’s name or image, often with no official connection to him. These copies exploit the president’s notoriety to deceive investors, increasing the risk of fraud and financial loss. 

Potential conflicts of interest

The fact that President Trump can influence cryptocurrency regulatory policies while benefiting financially from the TRUMP token raises ethical concerns. This situation creates a conflict of interest, where political decisions could be perceived as favoring his own investments. 

Impact on the credibility of the crypto market

The association of the TRUMP token with “memecoins”, often perceived as assets without intrinsic value, could harm the credibility of the entire cryptocurrency market. Investors fear that this initiative will divert attention from serious and innovative projects, reinforcing the image of a speculative and untrustworthy market. 

In short, the TRUMP token embodies the challenges faced by cryptocurrency investors: high volatility, increased risks of fraud, ethical concerns, and a potential impact on the market’s reputation.