It seems that Trump acknowledges his official digital currency 'MemeCoin', which has declined by 85% from its all-time high, as a tool to gauge public sentiment.
U.S. President Donald Trump has expressed support for the idea that the official 'MemeCoin' reflects public opinion towards his leadership.
In a post on his social platform 'Truth Social', Trump shared an article from Newsmax discussing how the official 'MemeCoin' serves as a gauge for political momentum, echoing the views of some cryptocurrency industry leaders.
While the president may view 'MemeCoin' as a measure of success, the currency's performance in the market presents a darker picture if used as a barometer for public sentiment.
At the time of writing this report, the price of Trump's official 'MemeCoin' (TRUMP) was around $10, down 85% from its all-time high of $73 in January. The launch of a $520 million currency in July may lead to further downward pressure.
According to on-chain data collected by Tokenomist (formerly known as Token Unlocks), only 26.48% of the total supply of the TRUMP token has been issued, while 73.52% - about 735 million tokens - have not entered circulation.
On July 18, TRUMP tokens will be launched in the market, representing 25% of the currently circulating supply. Tokenomist data indicates that 50 million tokens will be issued worth over $520 million.
The large number of tokens being introduced to the market may put further pressure on the token's price, especially if demand does not increase correspondingly.
In the lead-up to the currency launch on June 7, Eric Trump, the son of President Trump, attempted to boost market confidence through the Trump-backed cryptocurrency company, 'World Liberty Financial', announcing that the company plans to purchase a 'large amount' of 'MemeCoin' tokens.
The currency's price has not reacted significantly, prompting commentators to describe it as a 'bad indicator'.
Ultimately, investor acceptance of the upcoming currency launch or their reaction of mass selling in the market may indicate a broader political enthusiasm towards Trump's leadership.
Cointelegraph
