Crypto Market Volatility: Presidential Couple Sparks Token Storm

The crypto market is experiencing a huge shake-up. On the eve of the inauguration, President-elect Trump ignited the market first. On January 18, he announced the launch of his personal Meme coin TRUMP on social media, creating a precedent for national leaders to issue personal Tokens, bringing a historic milestone to the encryption world.

As soon as this news broke, TRUMP coin immediately triggered a buying frenzy. Its price skyrocketed by 1250% in a short period, reaching a peak of 80 dollars. On the first day, its market value exceeded 20 billion dollars, setting a new record for the growth rate of crypto market capitalization. The surge of TRUMP brought substantial returns to many investors, but it also sparked intense discussions worldwide.

Following closely, First Lady Melania Trump also launched a namesake MEME Token the next day. It seems that the presidential couple is extending their family business from real estate to the encryption currency sector, and their fundraising intentions are becoming increasingly apparent.

When Trump released a message on social media, the accompanying image showed his iconic fist-pumping pose. Due to the previous incidents of celebrity accounts being hacked in the crypto market, coupled with the rarity of a president personally issuing a coin, the market was initially skeptical. Nevertheless, the market capitalization of TRUMP coin skyrocketed to $2 billion within half an hour. It is worth noting that the top 10 wallet addresses hold approximately 89.61% of the Tokens, with the largest holder owning 80% of the share.

Subsequently, Trump confirmed this news again on another social platform, calling on supporters to join his community and purchase TRUMP Token. This move immediately ignited market enthusiasm.

The president's next move to issue a coin seems to have brought unprecedented opportunities to the encryption field. The price of TRUMP coin rapidly climbed from $20 all the way up to $74, with an increase of over 400 times. Its market value also soared from $2 billion to $15.2 billion, setting an astonishing growth rate. Currently, the frenzy of TRUMP coin has slightly receded, with a quote of about $48.65.

According to the official introduction, TRUMP is issued on the Solana chain, aiming to commemorate the image of Trump raising his fist and shouting "FIGHT FIGHT FIGHT" after being shot on July 13, 2024. The official statement calls it "the most memorable MEME of the century."

To attract a broader range of investors, TRUMP offers multiple payment methods, including traditional Apple Pay, Visa, Mastercard, as well as cryptocurrencies USDC, SOL.

From the perspective of Token distribution, the total amount of TRUMP is 1 billion coins, with an initial circulation of 200 million coins, and the remaining 800 million is expected to be unlocked linearly over 3 years. It is worth noting that two companies under Trump will receive 80% of the Tokens, with a lock-up period of 3-12 months, to be unlocked over the next 24 months.

The official website emphasizes that this project aims to express support for the "TRUMP" symbol and related concepts, rather than investment opportunities or securities. It also states that the project is not related to any political activities or government agencies.

For the crypto market, this is a significant event following the indirect involvement of the president's family in DeFi projects, as the president directly issues tokens in his personal capacity. This may inspire other countries and regions to follow suit, opening a new channel for political donations and personal profit. On the other hand, this also demonstrates Trump's high recognition of cryptocurrency. Considering that a large number of executive orders will be signed after the inauguration, the crypto market is likely to become a key focus, and the crypto industry is expected to welcome new development opportunities in the next four years.

The success of the TRUMP Token has also boosted the entire crypto market. Several large holders have made profits exceeding ten million dollars in a short time, and some well-known investors have earned over one million dollars from a single coin. One savvy investor even entered the market just 4 hours before the token's issuance, making an initial investment of one million dollars, with peak unrealized gains exceeding one hundred million dollars.

This event not only affected TRUMP coin itself but also drove up other major encryption currencies. Bitcoin rose from $97,000 to $105,000, while Solana emerged as the biggest winner, with an increase of up to 23.02% within 24 hours, breaking through $270 at its peak.

Trump himself has also benefited greatly from this. In just one night, his net worth surged to $28 billion. Based on the current token price of $48, the value of the encryption he holds has reached $38.4 billion. In comparison, Forbes valued his net worth at only $5.6 billion last November, which means his wealth has increased nearly 8 times in a short period.

However, this move has also sparked widespread doubts and criticisms. Some believe that the behavior of the president using personal influence to issue tokens for profit violates professional ethics. Unlike most U.S. presidents who disclose and divest their personal assets before taking office, Trump's approach blurs the lines between administrative duties and business interests.

A representative of a non-profit organization in the United States openly criticized that Trump's move is clearly intended to openly profit from the presidential position, in stark contrast to the practice of previous presidents who have made efforts to avoid conflicts of interest before taking office.

Even within the encryption field, there are critics of this behavior. Some industry insiders believe this action is predatory and could harm many investors. Even some supporters of Trump have stated that this behavior is detrimental to the entire industry.

In fact, Trump's practice of converting his personal influence into business interests has a long history. From universities and hotels named after himself, to the issuance of NFTs, and now as president issuing MEME Tokens, it reflects his consistent business strategy. The current heated discussion is mainly due to the special nature of the crypto market.

Trump's political stance has also changed with his interests. He strongly criticized encryption currency in 2021, but later shifted to support it, becoming the so-called "Bitcoin President." This change in attitude is largely driven by the demand for crypto funding and votes.

There is no denying that Trump has indeed shown remarkable skill in fundraising. The low barrier to entry of cryptocurrency perfectly meets his high funding needs. In addition to MEME coins and NFTs, other crypto projects from his family have also been successful. For example, the 20 billion WLFI Tokens of the World Liberty Financial project have all been sold out, worth 300 million dollars. The project then announced that it would reopen the sale of 5% of the tokens.

Melania Trump has also joined the cryptocurrency craze. The MELANIA Token she launched experienced rapid growth, with its price rising from $0.4 to a high of $18, reaching a peak market capitalization of $18.2 billion. Although it has since pulled back, it still maintains a market cap of around $7.2 billion.

From MELANIA's Token distribution plan, its intention of "cutting leeks" seems to be more obvious. The project team occupies 35% of the share, and it will start unlocking from the 30th day, completing full vesting within the first 13 months.

The market does not buy into this family-wide approach. After Melania launched the Token, TRUMP coin saw a massive sell-off, causing its market value to evaporate by $7.5 billion in just 10 minutes. This chain reaction is still ongoing, with many altcoins also experiencing declines.

Although Trump's actions have sparked ethical controversy, from the perspective of existing law, the U.S. Constitution does not seem to explicitly prohibit the president from using personal influence to gain benefits, especially in the crypto market where regulations are still unclear.

From the perspective of the crypto market, it is no longer new for celebrities to issue MEME coins, but most ultimately cannot escape the fate of failure. For investors, entering the market early and exiting in a timely manner remains key. Trump may consider his own reputation and public support, attempting to maintain the long-term value of the Token, but this move will undoubtedly push political MEME to new heights.

It is foreseeable that in the future, more political figures and even leaders from other regions may follow this practice, and the concept of "political Token" may迎来 a new wave of popularity. As Trump's inauguration speech approaches, the market's speculative sentiment and fervent atmosphere may further heat up.

However, whether this is a feast of wealth or a massive harvesting of retail investors remains to be answered by time.