Donald Trump launches his own cryptocurrency before the inauguration and generates US$40 billion in two days

Donald Trump launches his own cryptocurrency before the inauguration and generates US billion in two days

The elected president of United States, Donald Trump, announced during the early hours of Saturday the 18th, through his X account, the launch of his own memecoindeveloped on the Solana network. In less than a day, this cryptocurrency generated a transaction volume of billions of dollars and experienced an increase of more than 500% in value. Currently, this asset, whose market value is close toits$5 billionis now available on several exchanges in the city.

In recent years, Trump has adopted an openly favorable stance toward the cryptocurrency ecosystem, which has generated optimism in the market regarding the possibility of policies that benefit the sector. From our perspective, the new administration of the president-elect could represent a key boost for the mass adoption of cryptocurrencies in various areas, including use by individuals, companies and governments.

This announcement fuels expectations that Trump will implement more flexible regulations for cryptocurrencies, including the possible creation of a strategic reserve of Bitcoin for the US Treasury. However, as it is a memecoin, the risks associated with its investment are high. It is crucial that investors conduct detailed analysis before trading these types of assets, as memecoins are usually highly speculative and they lack solid technical foundations, which makes them vulnerable to various threats.

Among the most common risks are market manipulation strategies, such as “pump and dump”, where the price of the token is artificially inflated and then collapses. These practices may be related to groups that concentrate large amounts of the asset, encourage market interest and, upon reaching a high price, sell their massive positions, causing a collapse in value. In the most extreme cases, andThis can lead to what is known as “rugpull”, where the price of the memecoin falls to zeroleaving investors with total losses.

The cryptocurrency backed by Donald Trump, known as $TRUMP, in any case surprised the crypto market with an upward trajectory that generated historic returns for its investors, vastly exceeding initial projections.

In just 36 hours after its launch, $TRUMP recorded an increase close to 1,000%reaching a price higher than US$75 per unit and achieving an approximate market capitalization of US$15,000 million. This spectacular performance positioned it among the 15 cryptocurrencies with the highest global capitalization.

Based on the Solana network, $TRUMP debuted on the market at an initial value close to $7 and, in a matter of hours, surpassed $75 according to data from CoinMarketCap. This growth quickly attracted retail and institutional investors, as well as ensuring its listing on major exchange platforms.

Record profits in record time

The success of $TRUMP left significant profits for early investors. According to Lookonchain, a blockchain analysis platform, cases such as that of an investor who bought 1 million tokens at $11.5 million and saw his investment revalue at $43.3 million in less than a day, have been highlighted. Another investor bought 860,895 tokens for $12 million and sold them for $27.67 each, generating a profit of $11.8 million in hours.

Trump Coin.jpeg

However, some investors rushed to liquidate their positions before the token hit its all-time high. For example, an investor known as LeBron got $4.52 million for his tokens, but passed up a potential profit of $269 million. Another similar case involves an investor who sold for $1.35 million what would later have been worth $160 million.

Keys to the TRUMP phenomenon

The success of this memecoin is linked to both the political context and the influence of Donald Trump, who will assume the presidency of the United States on January 20, 2025. Trump has expressed strong support for cryptocurrencies and promised to prioritize them as part of his agenda. . In a social media message, he described $TRUMP as a “unique opportunity for true patriots,” which encouraged his followers to purchase the cryptocurrency.

The launch of $TRUMP also coincides with a growing interest in memecoins, assets whose value comes primarily from the community behind them and their cultural impact. In this case, Trump’s popularity and the loyalty of his followers have been decisive for the initial success of the cryptocurrency.

Despite their meteoric rise, analysts warn of the risks inherent in memecoins. These assets are highly volatile, which could lead to significant corrections in their price. Furthermore, maintaining investor interest beyond the initial enthusiasm will be crucial to the sustainability of $TRUMP in the long term.

Source: Ambito

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