Since Donald Trump was elected as the new president of the U.S., the crypto markets have turned extremely bullish. A couple of crypto-favourable moves raised optimism, which pushed the Bitcoin price beyond the $100K milestone. Moreover, with the launch of Trump’s official memecoin, OFFICIAL TRUMP, a new era of memecoins seems to have begun, which may be termed celebrity coins.
Cryptocurrencies after Trump
Donald Trump launched his token, followed by Melania, which has circulated shockwaves across the markets. This also indicates that Trump’s administration is less interested in regulating the sentiments but more inclined to take advantage of them. Their approach appears to be using them if they are set to remain forever. The launch of TRUMP is the biggest example, and with its decentralized nature and unrestricted market, more meme-like assets will emerge in the coming days.
Trump's Meme Coin Launch and Its Consequences
TRUMP has attracted massive liquidity, making it the fourth largest traded token after USDT, BTC, and ETH. Currently, many traders are still jumping in to buy TRUMP, despite the massive 45% plunge that occurred a few hours ago. It was launched on a Friday night with 80% of the supply in control. Besides, it is slurping liquidity from the other altcoins, which have exhausted the markets and also broken down the retailers.
Should You Buy TRUMP Now?
Presently, traders are aggressively buying TRUMP, even by selling their altcoins. However, a popular analyst, Michael van de Poppe, suggests considering the altcoins, which have dropped by 20%–30% in the past couple of days, rather than buying TRUMP. The decentralized crypto market will remain a global financial commons. Besides, the administration seems to have embraced free markets instead of regulated ones. Hence, in the next four years, all kinds of experiments with memes may emerge, which could change the market dynamics. However, Trump’s team is actively selling their tokens, increasing the selling pressure. Donald Trump made over $700 million in just a couple of days while his team has sold about 12 million tokens. Therefore, market participants need to be highly vigilant.
Despite the high interest in new meme coins like TRUMP, investors should exercise caution and thoroughly analyze their steps. Market changes can be unpredictable, and celebrity influence on cryptocurrencies may present new challenges in the future.
