‘We believe a new chaotic crypto era is here’ By Pakinomist

A new named cryptocurrency was introduced by a Trump-associated entity known as CIC Digital. The launch of this meme coin has attracted considerable attention, achieving a fully diluted market capitalization of approximately $73 billion and trading volume exceeding $30 billion in one day. This rapid success has allowed the TRUMP coin to eclipse the market cap of the previously dominant meme coin, DOGE, which sits at around $54 billion.

The introduction of TRUMP has triggered a number of reactions within the crypto industry. Proponents argue that the involvement of a major political figure like the president-elect signals a reduction in regulatory risks for token launches in the US, suggesting a resurgence of freedom and innovation for US crypto developers.

On the other hand, critics point to the fact that 80% of the TRUMP token supply is controlled by wallets linked to CIC Digital, raising concerns about potential market manipulation and the risk of loss to uninformed investors.

Bernstein analysts explain that the Trump family’s exploration of cryptocurrency follows their reported experience with de-banking after the 2020 election loss. The Trump campaign has previously leveraged crypto technology for fundraising, selling branded NFTs, mugs and sneakers.

The success of animal-themed meme coins such as DOGE and a PEPE frog-themed token indicates the potential for a politically branded coin to attract significant investment and new traders, as evidenced by more than 400,000 new holders on the meme token buying platform moon shot.

Analysts suggest that the launch of the TRUMP token marks a paradigm shift for the crypto industry, potentially heralding a new era of regulatory perspectives where governments can see cryptocurrency as a direct means of engaging with the public. This could lead to more crypto-friendly policies from certain politicians in the US and other countries.

In the coming days, the market’s attention will likely focus on how Trump-connected insiders will use the significant 80% TRUMP token supply they hold. Possibilities include using tokens as collateral for cryptobanking and financing projects, creating engagement models to reward supporters, or funding additional political initiatives. How the Trump team manages this supply will be critical to the token’s value stability.

The launch of the TRUMP token on the blockchain has also had a notable impact, with Solana seeing over $50 billion in trading volume in the last 48 hours and its token value increasing by around 20%. This increase in trading has tested blockchain’s capacity, a challenge that Solana aims to address by scaling to levels comparable to the NASDAQ.

“Whichever way you look at it, we believe a new chaotic era of crypto is here. The President of the United States has his own coin. Our position would be to see the event as a signal that a new era of crypto regulation has arrived for to stay and invest in the more valuable parts of the ecosystem But some may still crawl — it is what it is,” analysts wrote in a note.

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