HashKey Global Managing Director Ben El-Baz: Trump Meme Coin Success Will Inspire a Wave of Celebrity-Branded Crypto Projects

The success of the Trump meme coin will likely inspire a wave of celebrity-branded crypto projects, a global cryptocurrency exchange executive said Thursday.

HashKey Global Managing Director Ben El-Baz predicted that the success of the Trump meme coin will inspire a wave of celebrity-branded crypto projects.

In an interview with The Korea Times on Thursday, El-Baz said that the second Donald Trump administration has boosted the mainstream acceptance of cryptocurrencies, especially among conservative investors with little experience in digital asset investments.

However, he also noted that Trump's involvement with cryptocurrency seems to be more aligned with personal branding and political interests rather than a deep understanding of blockchain technology.

“Trump’s endorsement lends a sense of legitimacy to the Trump meme coin and similar assets, even if this is more emotional than grounded in technology or utility,” he said.

Trump's backing could attract many retail investors, potentially driving sharp short-term spikes in trading volume and prices.

“Trump’s team has previously leveraged his image for various nonfungible token launches and engaged with Ethereum-based DeFi (decentralized finance) projects like World Liberty Financial.”

A photo illustration created in London shows a smartphone displaying information on the price fluctuations of Dogecoin, backdropped by the "doge" meme displayed on a computer screen. A meme coin is a digital currency inspired by an internet meme. AFP-Yonhap

Gaining traction

Emotions and speculation still play a dominant role in shaping market dynamics despite the maturing technology and ecosystem of the crypto space, as illustrated by the rise of the Trump meme coin, he said.

The intersection of politics and cryptocurrency is gaining traction, with the success of the meme coins demonstrating how public events and figures can serve as significant catalysts for the crypto market.

“This trend could lead to the creation of more meme coins and attract a wider range of nontraditional investors. Meme coins are becoming increasingly mainstream," El-Baz said.

Once considered a niche part of the market, their popularity surged with figures like Elon Musk promoting Dogecoin, especially during the 2021 bull run.

The listing of Doge on major exchanges like Coinbase Pro, along with other animal-themed meme coins like Shiba Inu, brought a large number of noncrypto investors into the space.

A surge in retail investor interest in the crypto market is attracting a broader audience, as indicated by the increase in cryptocurrency-related app downloads, particularly on iOS and Android platforms, he added.

“An increasing number of retail investors are turning to cryptocurrencies, shedding its initial tech enthusiast label. The rapidly growing market carries risks, too. A lack of knowledge and experience can lead to blind investments and high-risk behavior, compounded by volatility and potential market bubbles. Education and regulation are vital at this stage," El-Baz said.

Overall, the barriers to entry in the crypto market are lowering. The large-scale adoption expected from Web3 is also underway.

This also increases the risk of market overheating and excessive speculation in the short term.

However, El-Baz noted that cryptocurrencies are steadily becoming more integrated into the mainstream. The trajectory of crypto will be influenced by short-term market catalysts, including traditional macroeconomic factors such as interest rate policies, inflation and the direction of the U.S. dollar.

Also in the mix is political support from the Trump administration leading to stricter regulatory scrutiny.

“History shows that only projects that offer real value and technological innovation will endure in the long run. To ensure sustainable growth, regulatory policies must strike a balance between protecting investors and fostering innovation," he said.