Trump's Meme Coin Seen as Positive Signal for Cryptos

Donald Trump's decision to launch his own cryptocurrency meme coin is being taken as a positive signal for the digital asset market

The cryptocurrency market has been abuzz with activity over the past few days, thanks to the antics of the 46th US President. It all began with the surprise launch of the $TRUMP meme coin late on Friday, which was followed by a Trump-linked entity participating in the Ethereum staking process on Monday.

These rapid-fire developments have left many scratching their heads, wondering what will happen next. However, some financial analysts are finally starting to weigh in with their insights, suggesting that there may be a method to Trump's madness after all.

To recap, the $TRUMP meme coin serves no other purpose than to unite like-minded traders and investors in a community that revolves around the star power of the outgoing US president.

On a more technical note, there are currently 200 million $TRUMP meme coins available for trading. Over the next three years, this supply will gradually increase to 1 billion coins. It's worth mentioning that the unreleased supply is currently being held by CIC Digital LLC, an affiliate of the Trump Organization, together with Fight Fight Fight LLC, a Delaware-based company linked to Trump.

At its peak, just before the launch of the $MELANIA meme coin on Sunday, the $TRUMP coin was trading at a market cap of around $13 billion. Furthermore, factoring in the coin's unreleased supply would bring its fully-diluted value to a staggering ~$70 billion. However, the launch of the $MELANIA coin did rattle the market amidst rampant speculation about dilution and the possibility of further coins being launched by other members of the Trump family.

"Our view would be to view the event as a signal that a new crypto regulatory era is here to stay and invest in the more valuable parts of the..."

— Wall St Engine (@wallstengine) January 21, 2025

Now, getting to the heart of the matter, Bernstein is out with its analysis of these fast-paced events, observing right off the bat that a "chaotic crypto era" is now here to stay:

"Whichever way you see it, we think a new chaotic crypto era is here. The President of America has his own coin."

The research and brokerage firm adds in its note:

"Our view would be to view the event as a signal that a new crypto regulatory era is here to stay and invest in the more valuable parts of the ecosystem. But some may still cringe - it is what it is."

Meanwhile, Hargreaves Lansdown analyst Susannah Streeter is viewing the launch of the $TRUMP meme coin as a "positive signal for the digital asset market," suggesting that Trump's pledge to make the US the crypto capital of the world will be honored, potentially ushering cryptocurrencies "into the financial mainstream with clearer rules about how individuals and firms can trade such assets."

In a note, Streeter adds:

"Nevertheless, investors should be mindful of getting carried away in a wave of speculation, with money they can't afford to lose."

As of writing, the $TRUMP meme coin has a market cap of $7.95 billion and a fully-diluted value of $39.79 billion.