Trump Coin: The Hype, Issues, and Precautions
Is the Trump Coin Really an Innovation?
On January 18, 2023, a post appeared on former US President Trump’s official social media account announcing the launch of a cryptocurrency called "Trump Meme Coin." This coin was created to provide a commemorative meme coin to Trump supporters and fans, and the post quickly became a hot topic. However, the news was met with both concern and excitement.
Key Points
1. Background of the Launch of the Trump Meme Coin
- The post on Trump's social media announced the emergence of the Trump Coin, emphasizing that this coin was a cryptocurrency intended "to celebrate victory."
- However, upon checking the website, there was no concrete technical content or real project information. The site simply repeated pictures of Trump and the word "Fight."
2. Hacking Suspicions and Official Certification
- Initially, there were suspicions of Trump's account being hacked. This was due to past cases where celebrities were hacked to promote specific coins.
- However, as time passed, Trump's side did not deny the related posts, and the possibility of hacking disappeared as Trump's unique writing style was maintained.
- In addition, the Trump Coin is a project within the Solana blockchain, and its credibility increased as the Jupiter team, a representative DApp of Solana, certified it as a "legitimate coin."
3. Exponential Rise of the Coin and the Butterfly Effect
- The Trump Coin rose 12,800% within 48 hours of its launch, surpassing $72 in price.
- Its market capitalization reached $1.4 billion, growing to a similar scale as companies like POSCO and SK Innovation.
- Some early investors have claimed to have made thousands of times their initial investment in a short period, sharing their success stories in online communities.
- Since the Trump Coin is based on the Solana blockchain, the value of the Solana coin also increased by about 13%.
4. Impact on Dogecoin and Other Coins
- Dogecoin, the existing representative of the meme coin market, suffered a 7% drop due to the emergence of the Trump Coin, losing market share.
- In addition, some altcoins saw their prices fall as funds were diverted towards the Trump Coin.
5. Risks of the Trump Coin
Increased Circulation:
- The total circulating supply of the Trump Coin is currently set at approximately 200 million, but there are plans to eventually increase it to 1 billion, which poses a risk of value dilution.
Beware of Pumping:
- The price surge of the Trump Coin is not due to its intrinsic value, but rather due to users purchasing the coin for short-term profit taking.
- There is a risk of a price crash after a rapid rise, which means only certain investors are likely to benefit, while the majority may suffer losses.
Volatility:
- Although the coin's price has surged in 48 hours, it has also dropped by more than 50% from its peak in a short period, indicating high volatility and risk.
6. Long-Term Impact on the Market
- The issuance of a coin by a president-level figure is interpreted as an unprecedented case. It has attracted liquidity to the cryptocurrency market and presented new investment methods to many individual investors, drawing market attention.
- However, excessive liquidity and speculative hype are reminiscent of the collapse of the cryptocurrency market bubble in 2021.
Essential Precautions Before Investing
- Potential for Long-Term Dilution: Be aware that the circulating supply of Trump Coin is set to continue to increase.
- Volatility Risk: A rapid rise can mean a rapid fall. A thorough investigation of the market is necessary.
- Beware of Speculative Psychology: Remember that it is becoming an object of short-term speculation rather than being invested in for its fundamental value.
- Compare to Other Success Stories: Don't get swept away by short-term big wins, and make careful decisions by referencing past similar cases (e.g., Dogecoin, Shiba Inu).
< Summary >
- Trump’s Meme Coin launch led to a 12,800% increase in a short period.
- Based on the Solana blockchain, the Trump Coin has gained credibility through official certification, but it has strong speculative characteristics.
- It has negatively impacted the meme coin market, including Dogecoin, while absorbing high liquidity.
- A careful investment decision is needed, considering the increased circulation and high volatility of the Trump Coin.
- Crafted by Billy Yang
[Related Articles at Next-Korea.com]
Trump and Cryptocurrency: A New Economic Paradigm?
The Rise of Solana, What are the Future Possibilities?
*YouTube Source: [내일은 투자왕 – 김단테]
– 트럼프 코인이 12800% 상승했다고? 그게 실화냐? ($TRUMP)
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