Trump's New Crypto Coin Skyrockets in Value to Over USD 10 Billion, Bitcoin Also Sets New Record High

o coin belonging to the 47th President of the United States, Donald Trump, skyrocketed in value to more than 10 billion US dollars (Rp163 trillion) on Monday, January 20. An enthusiasm for Trump's pro-crypto government has also pushed bitcoin to set a new record high.

The new crypto coin belonging to the 47th President of the United States, Donald Trump, skyrocketed in value to more than 10 billion US dollars (Rp163 trillion) on Monday, January 20. An enthusiasm for Trump's pro-crypto government has also pushed bitcoin to set a new record high.

Launched on Friday evening, January 17, a meme-based crypto coin called the "$TRUMP" jumped from a price of less than $10 on Saturday morning to a peak of 74.59 US dollars on Sunday, January 19. However, on Monday, January 20, the coin's value declined and was trading in the range of 33.88 US dollars, according to crypto price tracker CoinGecko.

Meanwhile, World Liberty Financial, another crypto project linked to Trump, announced on Monday that it managed to raise USD 300 million in early token sales and plans to issue additional tokens.

The launch of Trump's crypto projects comes amid expectations that his administration will be a "golden threat" to the cryptocurrency industry, in sharp contrast to the intense scrutiny under Joe Biden's administration.

Bitcoin, the world's largest cryptocurrency, hit a new record 109,071 US dollars on Trump's inauguration day as the 47th US President. However, after that bitcoin was slightly corrected and traded in the range of 101,867.40 US dollars on Monday.

The Launch Of Trump And Melania Coins Pushes Up Solana Prices

Market analyst from Conotoxia Ltd, Grzegorz Drozdz, explained that the launch of Trump and Melania coins launched on Sunday has increased the popularity of the cryptocurrency market in recent hours. Both tokens were created on the Solana blockchain, which also recorded an increase in prices to reach an all-time high of 294.33 US dollars on Sunday.

"In the short term, this could be a 'sell-the-news' moment, where investors sell assets after big news," said Matthew Dibb, Chief Investment Officer at Astronaut Capital. He added that the volatility is likely to continue in the crypto market.

Most of the $TRUMP tokens, about 80%, are owned by CIC Digital affiliates of the Trump business and other entities called Fight, Fight, Fight, according to its official website. These coins are described as "expression of support for the values and beliefs represented by the $TRUMP symbol" and are not declared as investment instruments or securities.

Ethics And Regulatory Issues Surrounding Trump's Crypto Projects

The launch of World Liberty Financial, just two months before the US election in November, has sparked concerns about conflicts of interest and ethical issues. The same happened at the launch of the $TRUMP meme coin on Friday night, even among the crypto industry itself.

"Although it looks like another Trump spectacular action, the launch of President Trump's official token opened Pandora's box on ethical and regulatory issues," said Hong Kong-based independent crypto analyst Justin D'Anethan.

The Trump organization previously stated that President Trump would hand over billions of dollars in family business management, including a portfolio of real estates, hotels, golf courses, media, and licenses, to his children during his tenure. Trump's net worth, according to Forbes, is estimated at $6.7 billion, not including a newly launched crypto project.

Pro-Crypto Policy Expectations And Impact On Crypto Prices

Enthusiasm of possible executive orders and other pro-crypto policies from the Trump administration has raised the price of crypto assets in recent months. However, on the first day of office, Trump has yet to announce new policies anticipated by the industry.

"Markets have high expectations of strategic policies such as national bitcoin reserves and easing digital asset regulations. But most likely, this development will occur gradually in the coming months, not directly in a matter of days," said Dibb.

Fluctuations And Risks Of Speculative Assets

The huge increase in the price of these meme coins has also sparked concern among market analysts. Drozdz of Conotoxia believes that meme-based crypto coins like this are prone to large fluctuations and are more considered speculative assets.

"$TRUMP obscures the boundaries between governance, profit and influence," said D'Anethan, highlighting how crypto can blend with politics.

With the $TRUMP coin creating major breakthroughs in the crypto and political world, crypto market travel under Trump's rule is expected to continue to be in the spotlight, especially with regulatory expectations that are more friendly to digital assets.