Two days before the inauguration, President-elect Donald Trump caused a stir in the cryptocurrency community by announcing the official meme coin named TRUMP on the Solana platform ($SOL ). This event not only surprised many but also sparked considerable debate among experts and investors.
Immediate Effects from TRUMP Coin
The announcement posted by Trump on Truth Social on January 17 claimed that this token symbolizes his "victory." Initially, many suspected Trump's account had been hacked, but an official confirmation from his team dispelled these concerns.
After its launch, the TRUMP coin quickly created a major wave in the market:
First 15 minutes: Token reached a market cap of 400 million USD.
Stellar growth: The price of TRUMP surged over 12,000%, peaking near 35 USD before slightly decreasing and fluctuating around 29 USD.
Ripple effect: The TRUMP token has pushed the price of Solana (SOL) to an all-time high of 267 USD, bringing the Solana ecosystem's market cap above 10 billion USD.
TRUMPUSDTPerp5.713-0.03%
Community Reaction
Despite creating a frenzy, TRUMP Coin also faces many criticisms and concerns:
Ethics and Transparency:
YouTuber #Coffeezilla condemned the project as "unethical" and claimed that 80% of the token supply was distributed to Trump's close associates.
Economist Peter Schiff called this "a dangerous move," while warning about the potential for the project to harm the cryptocurrency market.
Risks from supply allocation:
Currently, only 20% of the total supply (1 billion tokens) is circulating, while the remaining 80% will be released within 36 months.
The top 20 wallets hold 87.02% of the total supply, raising concerns about control and price manipulation by the development team.
Dangerous FOMO:
Analyst Will Clemente warns that FOMO sentiment could lead to a rapid price increase for TRUMP but also poses a risk of sharp declines when the money flows out.
Risks to Investors
Although it brings substantial short-term profits, TRUMP Coin carries many risks:
Concentration of power: Uneven supply allocation leads to the risk of market manipulation.
Lack of practical application: As a meme coin, TRUMP has no clear utility beyond speculation.
Value depreciation risk: With high volatility, the price of TRUMP could drop sharply if the market turns.
SUIUSDTPerp1.6082-0.00%
Conclusion
TRUMP Coin is a phenomenon that has garnered significant attention in the cryptocurrency community but is also fraught with warning signs. Investors need to remain vigilant and cautious before participating in this project.
Risk Warning
Cryptocurrency is a high-risk asset class, with values often experiencing significant volatility. Investors should conduct thorough research and only invest money they can afford to lose. Always ensure you understand the project well before trading. #anhbacong
