The introduction of President-elect Donald Trump’s TRUMP memecoin is a paradigm shift in the way the US and the rest of the world approach crypto, broker Bernstein said in a research report on Monday.
“It means a new regulatory era where governments see crypto as a technology to reach the masses directly,” said analysts led by Gautam Chhugani.
Trump’s official memecoin debuted Saturday on the Solana blockchain. It rose to a fully diluted market cap of around $73 billion, making it one of the most successful token launches ever. It shot up nearly 40% on Sunday when his wife Melania launched her own memecoin, MELANIA.
A token launch by the president-elect is a big signal to crypto builders in the US, especially given the Biden administration’s crackdown on the industry, Bernstein said.
It says “build away in the US and don’t be shy about launching tokens – a new crypto-regulatory era is here,” the authors wrote.
Still, the market may want more information about the utilization of the 80% of the TRUMP supply held by CIC Digital, an entity 100% owned by the Donald Trump Revocable Trust.
A memecoin leveraging Trump’s brand and policies has “potential longevity” but would depend on the token design to “make it less minable due to 80% insider supply,” the report added.
The TRUMP token will be listed on major crypto exchanges, including Coinbase and Binance, according to announcements from the companies.
Read more: Coinbase, Binance plans to list Donald Trump’s official TRUMP token after its phenomenal debut
UPDATE (January 20, 11:18 UTC): Replaces lead image.
