The cryptocurrency market has recently witnessed an unprecedented event. Just two days before the official inauguration, President-elect Donald Trump drew attention by launching the “official meme” cryptocurrency named TRUMP on social media X.
This bold move not only shocked but also elevated his assets to new heights, leading to a surge in cryptocurrency trading volume.
Within 48 hours of its launch, the 24-hour trading volume of the TRUMP token reached an astonishing $52.5 billion, indicating high interest from private investors and major financial institutions.
At the same time, the price of Bitcoin experienced a significant leap, reaching an all-time high.
This synchronized growth demonstrates how political events can influence financial markets, creating extraordinary speculative opportunities.
Of the nearly 1 billion TRUMP tokens issued, about 80% are controlled by CIC Digital LLC, a subsidiary of The Trump Organization, and another Trump company, Fight LLC.
This brings Trump an estimated fortune of $40 billion solely from meme cryptocurrency.
Such immense success can be attributed to the unique mechanism embedded in the TRUMP token that attracts investors.
Built on the Solana blockchain, the TRUMP token has become a speculative financial instrument, allowing investors to bet on political changes.
However, this also makes it a volatile financial asset as Trump's political decisions can directly impact the token's price and thus the investors' profits.
Of the tokens issued, 200 million coins are actively traded. Entities controlled by Trump own the rest and may enter the market in the next three years, starting from April.
According to the official website, this new cryptocurrency is not an investment opportunity and is not related to any political campaign or office.
However, that hasn't stopped early users from making millions from it.
On average, Trump's companies could sell about 24 million tokens per month, thereby continuing to drive speculation in the market.
To supplement the family's cryptocurrency empire, Trump's wife launched her own coin, MELANIA.
The value of this coin quickly skyrocketed, reaching $9.6 per coin and achieving a market capitalization of over $1.85 billion.
Not wanting to fall behind, Donald's daughter also entered the cryptocurrency space with her own IVANKA token, reinforcing the Trump family's growing influence in the cryptocurrency sector.
The outlook for regulatory easing in the cryptocurrency sector has sparked enthusiasm in the industry, which is one of the factors driving Bitcoin's growth since Trump's electoral victory in November.
Interestingly, Trump's influence is not limited to cryptocurrency, but also extends to traditional currency markets.
As the USD depreciated at the beginning of Trump's term, European currencies such as EUR/USD and GBP/USD showed signs of appreciation after his inauguration.
Thus, the story of the cryptocurrency introduced by Donald Trump highlights how specific political events can profoundly impact financial markets.
As the cryptocurrency industry enters this new era, the allure of wealth from cryptocurrency will continue to attract both investors and regulators.
However, it's important to remember that investing in cryptocurrency carries risks, and every decision needs to be carefully analyzed.
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