TRUMP Meme Coin: A New Regulatory Era or a Market Manipulation Scheme?

Memecoins were on the rise in 2024. Their overall market capitalisation increased from $20 billion last January up to $120 billion in December 2024. Such coins as DOGE, PEPE, or SHIB have thrived, primarily driven by community support and innovative strategies. Some experts have even acknowledged meme coins as a viable crypto trend. TRUMP, a meme coin created by Donald Trump, the 45th and 47th U.S. President, has emerged as a speculative and rather controversial asset. However, it may still signal mass adoption of crypto, regulatory warm-ups and new crypto trends. Global broker Octa explains how the meme coin may impact the market.

In 2024, memecoins experienced a surge in popularity, with their total market capitalization increasing from $20 billion in January to $120 billion by December. Memecoins like DOGE, PEPE, and SHIB thrived, largely driven by community support and innovative strategies, leading some experts to recognize memecoins as a viable crypto trend.

Against this backdrop, TRUMP, a memecoin created by Donald Trump, the 45th and 47th U.S. President, emerged as a speculative and controversial asset, potentially signaling mass crypto adoption, regulatory warm-ups, and new crypto trends. Global broker Octa unpacks how the memecoin might impact the market.

Source: Shutterstock

TRUMP: launch and price飙升

On January 17, 2025, three days before his inauguration, Donald Trump surprised the nation by launching TRUMP, a memecoin on the Solana blockchain. Trump announced the launch on his official X and Truth Social accounts, and the coin's value quickly surged, especially after it was listed on several CEXs (centralized crypto exchanges) like ByBit. Within two days, it increased from $7 on January 17 to $75 on January 19.

The next day, as the President entered the White House, the price experienced a significant drop, with the minimum being around $38 per coin. At its peak on January 19, the coin became the 19th most valuable crypto globally. At the time of writing, the coin ranks 25th on CoinMarketCap by market capitalization, outperforming popular memecoins like PEPE and, notably, 10-year-old XMR.

TRUMP is considered a memecoin because it has no inherent value, and the asset's price depends entirely on market sentiment: buyers and sellers can manipulate the price. However, Trump's fans and crypto enthusiasts actively supported the coin. The volume of daily traded coins reached its maximum on the inauguration day, January 20, exceeding $52 billion.

Currently, the circulating supply is almost a fifth of the total supply: 200 million tokens. Another 800 million are controlled by Trump-owned entities. The developers plan to release the remaining tokens gradually over three years. However, many experts are concerned that the owner could crash the market by selling the controlled assets.

MELANIA meme coin: launch and market impact

Following the hype around the TRUMP coin, Melania Trump announced the launch of her memecoin, MELANIA. While its value reached almost $13 on January 20, and many crypto traders left TRUMP to trade MELANIA, the asset's price has since dropped. The First Lady's coin was officially presented by her incorporated company, MKT World LLC.

The coin has contributed to the Trump family's crypto hype. There were even rumors that another coin from Ivanka Trump, the daughter of the elected President, was about to launch. However, no official news or evidence was released, so this could be false.

TRUMP’s future

TRUMP has been a controversial asset, with some believing it signals "a new regulatory era, where governments see crypto as a technology to reach out to the masses directly" and others convinced that the launch has undermined the industry's credibility, as the coin is highly volatile and speculative. For instance, Erik Voorhees, a prominent Bitcoin investor, has criticized the asset.

"Although TRUMP could be considered as a 'rug pull'-a quickly abandoned coin-it might have potential longevity. One of the deciding factors is the remaining 80% of the supply and its future," comments Kar Yong Ang, a financial market analyst at Octa Broker. "For now, the asset's future depends on the crypto society and its willingness to buy TRUMP. This is evidenced by the launch of MELANIA, which shifted liquidity in its favor and significantly dropped the President's token price."

Considering the emotion-driven buying frenzy of the TRUMP coin, which potentially brought many newcomers to the crypto market, it's likely to provoke another wave of memes from celebrities and influencers. While memecoins are known for their high returns, especially during the launch on CEXs, they are highly volatile and speculative. Traders should avoid making quick decisions and overbudgeting to protect their funds.

Moreover, it's advisable to be aware of scams. For example, there are now fake TRUMP tokens. Additionally, hackers may attempt to capitalize on the meme hype. Recently, scammers hacked Nasdaq's X account and promoted a fake memecoin, STONKS. It launched the same day and was a copycat of a pre-existing memecoin on Solana. Despite this, the project's market capitalization reached $80 million. Several days later, the token's price crashed.

Nevertheless, TRUMP could be an indication of a crypto-friendly