Trump Coin: The Bullish, Bearish and Potential

Hours to his inauguration as the 47th President of the United States of America, Donald Trump, launches his own cryptocurrency  called $Trump. The digital coin appeared on his social media accounts ahead of his inauguration on Monday and quickly became one of the most valuable crypto coins reaching a peak of $75 per con within a day.

The trump coin despite being a meme-coin – a cryptocurrency with no utility other than for fun or speculation,- became a market sensation, creating a surge like no other cryptocurrency has done in recent years. Here is everything we know about the Trump coin, its bulish, bearish and potential in the future.

The Bullish

According to  BBC, the Trump coin venture was co-ordinated by CIC Digital LLC – an affiliate of the Trump Organization – which has previously sold Trump-branded shoes and fragrances. According to the coin website, only  200m of the digital tokens have been issued and another 800m will be released in the next three years.

This is not the first time Trump has sold crypto products. He launched a series of NFTs of him in various superhero poses in 2022. Also, the president is a known crypto enthusiast, who promised Bitcoin fans he would make the US the “crypto capital of the planet”.

So a few hours after its launch, the value of the coins for $Trump reached nearly $5.5bn (£4.5bn), according to CoinMarketCap.com. Its market cap then climbed past $8 billion over the weekend. The coin went on to become the 25th most valuable crypto coin with a value of around $14 billion.

The Bearish

Following the viral success of trump coin. On sunday $MELANIA token was introduced named after the first lady. The coin quickly spiked more than 40%, surpassing $2 billion in value. However Both the Trump and Melania coins have dropped significantly from their highs.

As of the time of this report, the market cap for trump coin has dropped back to $5 Billion, with a single token going for $28.8 This dip can be traced to a variety of factors, but most significantly  “Trump’s comments about not knowing much about the coin.

The  American president told reporters: “I don’t know much about it other than I launched it, other than it was very successful.” When he was told his coin raised several billion dollars for him, he played it down saying “Several billion – that’s peanuts for these guys” pointing to tech billionaires assembled for a press conference about AI.

The coin dip has generated of skepticism and criticism against the President from those in and around the industry. with some suggesting that the President  fire his crypto advisors, from top to bottom and replace with people who know what they are doing. Some reports suggested that the President might have used the meme coin frenxy to enrich himself and his family.

The potential of Trump Coin

So what is the future potentiality of Trump coin. The finance, crypto and stock website, The Motely fool, recently reported that they are  new development which could send  the price  of the token higher. According to the website, there are now applications for an Official Trump , exchange-traded funds (ETFs) that are meant to closely track the performance of these assets give investors the exposure they want via their normal financial accounts.

ETFs tend to attract capital, buoying prices of the corresponding crypto and increasing their integration into traditional financial markets. It  important to note that  the president has a vested financial interest in at least somewhat preserving the asset’s value, as it bears his name.

However this doesn’t change the fact that as a meme coin, which is inherently a highly speculative and volatile bet, regardless of whether it’s held on the blockchain directly or in an ETF.