- Australian analyst Miles Deutscher sees Trump’s token as more significant than the 2017 ICO bubble, highlighting its potential to establish Solana as “America’s chain” while warning of possible market-wide liquidity drain.
- The token’s 24-hour trading volume reached US$6.3 billion, surpassing both Solana and Bitcoin, suggesting unprecedented market interest in politically-aligned cryptocurrencies.
- Research firm 10X Research classifies TRUMP as a fan token rather than a memecoin, pointing to potential utility through exclusive perks and suggesting it represents broader support for crypto-friendly policies.
You’d expect that Donald Trump is fairly busy these days, with his upcoming inauguration and all, but apparently, he found the time to create his own memecoin. The coin named Official Trump (TRUMP) has seen some crazy gains since its launch a couple of days ago.
Initially, it soared several hundred percent, reaching as high as US$75.35 (AU$121.61) only to plummet to US$45.50 (AU$73.44) at the time of writing, as the soon-to-be First Lady, Melania Trump, launches her own memecoin, stealing the show from TRUMP.
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The TRUMP coin was revealed at the Crypto Ball in Washington Friday US time, where Crypto Czar David Sacks declared that the “reign of terror against crypto is over”.
The beginning of innovation in America for crypto has just begun.
David SacksBut, Australian analyst and YouTuber, Miles Deutscher says this is not just another memecoin launch, taking to platform X, he said this “is bigger than the ’17 ICO bubble”.
Deutscher Weighs Pros and Cons of TRUMP
In another post, Deutscher summed up, in his opinion, the pros and cons of the Trump memecoin move:
On the pro side, Deutscher said the Trump token possibly presents considerable benefits, primarily by establishing Solana as “America’s chain” and reinforcing Trump’s pro-cryptocurrency stance, which could lead to more favourable crypto policies and increased mainstream adoption.
This is evidenced by Moonshot’s rise to the top of app store rankings. This mainstream attention could accelerate institutional inflows and signal a welcoming environment for crypto innovation in the US market.
However, the downsides are equally significant: the token’s success could drain liquidity from other altcoins, while potentially damaging crypto’s reputation in Congress and complicating future legislative efforts.
Makes crypto look bad in congress (could this actually impede Trump’s ability to pass legislation?).
Miles DeutscherDeutscher thinks the trend could cause a wave of celebrity-backed meme tokens, leading to market dilution, and the increased volatility suggests we might be approaching a market top sooner than previously expected.
Perhaps most notably, this development appears particularly bearish for Ethereum, as it strengthens Solana’s position and could accelerate ETH holders’ capitulation, the analyst concludes.
Bearish $ETH – this is an obvious one, but the SOL/ETH trade has clearly strengthened and will lead to further capitulation.
Miles DeutscherTRUMP Not a Memecoin, But a Fan Coin, Says 10X Research
Interestingly, TRUMP’s 24-hour trading volume of US$6.3 billion (AU$10.1 billion) has hit highs surpassing that of Solana (U$5.4 billion or AU$8.7 billion) and even Bitcoin with its US$5.1 billion (AU$8.22 billion), according to data from analytics firm 10X Research.
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They also said it’s perhaps more accurate to call TRUMP a fan token, not a memecoin:
Holders use it to celebrate the market gains following his November election and express support for potential crypto-friendly policies under Trump’s new administration. As a fan token, it also offers potential utility, with the possibility of airdropped perks such as exclusive event access, news, and other gated benefits directly to holders’ wallets.
10X ResearchCredit: Source link
