The memecoin $TRUMP garnered significant attention with its sharp increase in value, potentially augmenting the wealth of former U.S. president Donald Trump.
Launch and Rapid Rise of $TRUMP
The launch of the $TRUMP memecoin on the Solana blockchain led to a financial upheaval. Announced by Donald Trump on Truth Social and X, the new token gained worldwide interest, achieving a transaction volume of nearly $10 billion in less than a day. With a market cap of $8 billion, $TRUMP entered the top 30 global cryptocurrencies before stabilizing at $5.7 billion.
Economic Implications for Donald Trump
According to Arkham Intelligence, 80% of $TRUMP tokens are held by two Trump-linked entities, representing a theoretical value of $22.4 billion, potentially quintupling his wealth. However, such token concentration raises concerns about market manipulation risks.
Potential Issues and Future Regulation
High token concentration and manipulation risks, along with possible emulation by other politicians, could turn the market into a speculative field. In this context, Gary Gensler's actions at the SEC might prove to be quite justified.
The sharp rise of $TRUMP presents both financial opportunities and potential threats. Therefore, regulation of the crypto market becomes particularly important.
