The Trump family’s newly-launched tokens may usher in a wave of retail investor adoption for high-risk digital assets such as memecoins and smaller cryptocurrencies.
Trump’s advisory team launched the Official Trump (TRUMP) memecoin on Jan. 18 and the Official Melania (MELANIA) token on Jan. 19 on the Solana network, ahead of US President-elect Donald Trump’s presidential inauguration on Jan. 20.
The memecoin launches represent a “pivotal moment” for the crypto industry, according to Anndy Lian, author and intergovernmental blockchain expert.
The move will usher in a “new era for memecoins and altcoins,” Lian told Cointelegraph, adding:
“It’s fascinating to consider this as a revival of the ICO craze, amplified by significant market capital and global influence. This isn’t just another token launch; it’s backed by the kind of coordinated financial groups and celebrity endorsement that can drive market caps into the billions, showcasing a scale and impact not seen before in the memecoin sector.”
Despite widespread retail enthusiasm, the Trump token fell by over 17% in the 24 hours leading up to 10:15 am UTC. The token rose to a peak market cap of above $14.9 billion on Jan. 19, before falling over 27% to the current $10.8 billion market cap, CoinMarketCap data shows.
The TRUMP token saw $5 billion wiped off its market cap in the 40 minutes after MELANIA launched, with its price falling 38% from $74.6 to $45.9 on Jan. 19.
A new era for political memecoins: CryptoQuant CEO
Other notable industry insiders also see the Trump family’s memecoin launch as an unprecedented moment for the crypto industry.
Notably, this will open a new era for memecoin investing, according to Ki Young Ju, the founder and CEO of CryptoQuant.
“The underlying reality of financial markets behaving like memes isn’t going away,” Ju wrote in a Jan. 20 X post. He added:
“It’s worth considering how to make the most of it. With its decentralized nature, crypto is a fully global, unrestricted market, meaning even more meme-like assets will inevitably emerge.”
“The Trump administration has embraced free markets instead of regulated markets, and over the next four years, we’re likely to see all kinds of experiments with meme-driven communities in the crypto,” Ju said.
For other analysts, the memecoin launch signals a potential rotation into altcoins, or cryptocurrencies excluding Bitcoin and Ether.
The memecoin’s success underscores the high-risk appetite of investors chasing profits, according to Valentin Fournier, an analyst at Blockhead Research Network.
In a research note shared with Cointelegraph, he stated:
“Such moves indicate a potential rotation of capital from major assets to smaller, high-risk ones. Altcoins could outperform Bitcoin and Ethereum in the coming months.”
Still, some see this as a net negative for the crypto space, accusing Trump’s team of orchestrating a “pump and dump scheme” after back-to-back memecoin launches added billions of dollars to the net worths of the incoming US president and first lady.
Source: https://cointelegraph.com/news/trump-era-memecoins-analysts-predict-altseason
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.