Trump's $TRUMP coin "the greatest of them all"

Donald Trump, American President and crypto supporter, took to his platform of Truth Social, calling his $TRUMP coin “the greatest of them all.”

American President Donald Trump, a known supporter of crypto, took to his platform of Truth Social to call his $TRUMP coin “the greatest of them all.” The post instantly triggered a 15% increase in the price of the coin, which has been performing poorly in recent months. The Solana-based token was launched in January and quickly hit a peak of $14.5 billion in market cap by the president’s inauguration day.

“I LOVE $TRUMP — SO COOL!!! The Greatest of them all!!!!!!!!!!!!!!!!”, wrote Trump on the social media platform.

(Image Credit: Truth Social)

The post quickly gained attention and resulted in a 15% increase in the price of the $TRUMP coin. The momentum of the rise is still moving, despite the coin being a meme coin. The largest wallet on the network, presumably the project’s wallet, did not sell during the pump, even though doing so would have made a large profit for them. The wallet totals 83.5% of the supply. The price is trading around a key resistance level and could break through this level and rise further.

The $TRUMP coin has experienced wild volatility, rising in billions during Trump’s presidential inauguration and crashing 75% during wider market turmoil. Democrats have attacked it, wishing to create new legislation to stop public officials from promoting meme coins.

When asked about his meme coin in January, Trump said he didn’t know much about it but had heard it was doing well on the market. When the coin dropped in price, many people said the coin’s popularity was over. However, the recent pump shows there is still a lot of interest in the meme coin.

Critics of the coin say that Trump is setting a dangerous precedent where public officials are using their position to benefit themselves financially.

The $TRUMP coin went up 7.7% at one stage, but even at this level, it was down 84% from its all-time high. Head of crypto at GCash Luis Buenaventura pointed out that this showed a lack of interest in the meme coin despite short-term pumps.

Meme coins have been around long before the $TRUMP token. Many buyers of meme coins may have never bought a token before. But in 2013, the first major meme coin, Dogecoin, was created as a joke at first but then became a very popular blockchain. Many meme coins rise quickly and then suffer a crash. Others rise in popularity only to stabilise later, enriching early investors but losing money for everyone else.

To many, the $TRUMP coin may look like a pump-and-dump scheme, with a pump caused by a social media post and insiders pulling the rug by withdrawing funds. But there is no indication at this stage that insiders withdrew their holdings. The $TRUMP coin has over 650,000 holders.

The Trump brand is well known throughout the world. Many people may buy and associate the coin with Donald Trump, the U.S. president. If the economy improves and Trump remains president, economic changes may further boost the price. Further, the Fed may start boosting market liquidity, boosting meme coins like the $TRUMP token, leaving people with more leftover money to use on speculative assets.

Meme coins have followed trends in the broader crypto industry, seeing massive declines as the major tokens fell in value. The LIBRA coin incident, a very similar situation to the current article, involved the president of Argentina promoting LIBRA just before it suffered a rug pull from insiders. The incident, for many, marked a decline in meme coin popularity. However, the $TRUMP insiders did not pull the rug and had enough confidence in the meme coin to ride a massive price decline.

Meme coins present a serious problem for investors, who must consider a large amount of coins available for purchase. The SEC even described meme coins as akin to collectables, such as trading cards or memorabilia, suggesting a possible approach to judging the worth of these tokens. Further, successful meme coins are few and far between, meaning that most will not be profitable. One factor for judging the worth of a meme coin is whether it has a cult like following. The $TRUMP coin may still be successful, given that it has that one key feature of a successful meme coin.