jakiro
Author: Liam
Trump, the first US-elected crypto president, is leading by example to show the world how MemeCoin rewrites the rules of the world’s capital markets.
On January 18, two days before taking office as president, Trump announced his own “official” Memecoin TRUMP on his Truth Social and X accounts, a move that shocked the world.
Trump wrote on his social media Truth Social: “My new Trump official emoticon is here! It’s time to celebrate everything we represent: victory! Join the Trump community I specially created. Come nowTake your Trump emoticons.”
At the beginning, the crypto community questioned the legitimacy of the token.Some warned that it could be a hacker attack or a social engineering program.In fact, even Elon Musk is not sure whether Trump’s X account has been hacked.But as Trump’s posts have been online and Polymarket data suggests that the account is only 10% likely to be stolen, people’s doubts have begun to fade and the price of tokens continues to rise.
TRUMP opened at $0.1824, but it rose by more than 15,000% in 12 hours. As of 10 a.m. ET, 12 hours after the token issuance, it traded at about $30.
Since its 12-hour launch, the MemeCoin project’s market value has soared to $30 billion, about three times the market value of Trump Media Technology Group DJT (about $8.7 billion).This is an exponential growth process, with its market capitalization rising by $1 billion every few minutes.
According to estimates by blockchain analytics platform Arkham Intelligence, Trump’s wealth soared to $28 billion overnight, thanks to the virtual currency “TRUMP” issued by Trump, which made his estimate netAssets increased by 400%.Trump’s affiliates CIC Digital LLC and Fight Fight LLC control 80% of the supply, with the value of his holdings soaring to $22.4 billion.Forbes valued Trump’s net worth at $5.6 billion in November last year.
Some industry investors said that because of cryptocurrencies, Trump and his family have made more money in the past 12 hours than they have made in the past 50 years.This may explain why he supports cryptocurrencies so much?The price of cryptocurrency is not included.Under Trump’s leadership, the price of cryptocurrencies will continue to rise.
“80% of the token supply is locked in a multi-signature wallet worth $3 billion, controlled by the creator, and he added 40 million,” said Conor Grogan, head of product operations at Coinbase, in an article published on X.liquidity in the dollar,” he added, adding that the project received millions of dollars of seed funding from Binance and Gate, two exchanges that do not provide services to U.S. clients.Other analysts pointed out that 80% of the supply of tokens was allocated to Fight Fight Fight LLC and CIC Digital LLC, which are associated with the Trump Organization, and only 20% of the supply was evenly distributed between public investors and liquidity.
Although Trump controls the vast majority of tokens, these tokens are still locked, meaning the U.S. president is unlikely to “kill” his millions of his most loyal fans…at least for now.
Additionally, while Solana-related memecoin pushed Solana’s market value to a record $118 billion, Ethereum, the main source of liquidity, saw a offset drop in its price, with its market value falling by 5% overnight, lost about $240 billion in value.
Trump’s remarks come as the president-elect continues to support the cryptocurrency initiative.He once bluntly expressed his skepticism about cryptocurrencies, but during the campaign, he made a 180-degree turn, promising to reshape the US cryptocurrency landscape and make the US the “global cryptocurrency capital.”Trump nominated Paul Atkins as chairman of the Securities and Exchange Commission (SEC), and he is expected to lead the efforts.Atkins, a well-known cryptocurrency advocate and former SEC commissioner, will replace Gary Gensler, who has been criticized for hitting the industry.
Finally, while many are happy to join the biggest momentum deal ever, which even overshadowed social media phenomena like Gamestop and AMC, some people like senior Bloomberg ETF analysts are skeptical about it.They believe that Trump’s special attempt “seems to be exploitative” and is “a non-compulsory mistake that is happening.”
Whether he is right or wrong depends on how long it will take for the bubble to burst.
Putting aside the bubble, we will think about what the significance of this first “presidential issuance of coins” moment in world history is?
Raoul Pal, a global macro investor, said the signal here is the speed and simplicity of capital formation.The previous MemeCoin and ICO are just experimental cases. The real capital game has not yet arrived and it will completely change the capital market.
Jeff Dorman, former Citi and current digital asset investment officer, believes that the market has lost its rational understanding of $Trump and has completely missed the rise process.
First, potential U.S. token issuers and investors have been concerned about “regulatory issues” for more than three years, he said.Now, when the president himself is both an issuer and an investor, this concern can be completely eliminated.
Now, the president’s issuance of Memecoin does not mean that the whole world will only focus on memecoin.Trump verified the technology, but introduced only the single purpose of the technology.Potential issuers and investors can go beyond this limited application scenario
The Internet boom began with the “.com companies”, which existed only because of the existence of the Internet.But most have failed.The Internet is only able to develop when non-Internet native companies start using the Internet.Now, every company is a “.com company”.Walmart, Domino, JPMorgan Chase, etc. are now all “.com companies”.
TRUMP tokens show every company, municipality, university and individual brand that cryptocurrencies can now serve as capital formation and customer guidance mechanisms.New York City will issue a token, Harvard University will issue a token, and Netflix will issue a token.
We are now officially saying goodbye to the “dot-crypto” stage of blockchain.All existing use cases for cryptocurrencies come from cryptocurrency native companies, but in the future, the world will propose innovative ways to use tokens.
When this happens, many of the currently useless tokens and projects will die out, but the biggest and best will thrive with the support of millions of new investors, issuers and users.
In Jeff Dorman’s opinion, if you’re an investment banker, you have to start selling token ideas to your clients.
Now.The instant price movement on Friday night shows that cryptocurrencies are now a joke and the only winner will be the blockchain that issues joke coins ($SOL).But this is short-sighted, and the lack of liquidity on weekends is more important than anything else.
Those who call this “top of the cycle” have lost their minds.Post-traumatic stress disorder is real, and you all have suffered so much damage in 2022 that it is impossible to imagine what will happen in the crypto-friendly environment that is coming.
Jeff Dorman finally said, so, to summarize – although I personally don’t care much about meme coins or TRUMP tokens, I’m very concerned about the future application scenarios of blockchain.And the US president just gave the green light to all future possibilities.
