As Donald Trump begins his second term as President of the United States, Trump-backed cryptocurrency ventures are making waves in the digital finance world. On Monday, World Liberty Financial (WLF), a Trump-associated blockchain initiative, announced it had raised $1 billion through token sales. Meanwhile, Trump’s meme coin, $TRUMP coin, skyrocketed to a market valuation exceeding $10 billion, capturing the attention of investors and crypto enthusiasts alike.
Trump’s Crypto Era Unfolds:
WLF was launched just two months before the U.S. election by Donald Trump and his sons with Middle East special envoy Steve Witkoff; it has been quick to claim its place in the crypto space. Its rise coincides with a ‘golden age’ of cryptocurrencies promised by Trump, a position that is contrary to the regulation under the Biden administration.
The event made even more excitement when the first $TRUMP meme coin was presented at the Crypto Ball, an event held simultaneously with inauguration ceremonies in Washington, D.C. The price rose from under $10 on Saturday to a high of $74.59 on Monday before flattening out.
Melania Joins the Crypto Revolution:
Picture Courtesy: Getty Images
Former First Lady Melania Trump joined the cryptocurrency fray by launching her coin, $MELANIA, on Sunday. Within hours, its market value shot over $1 billion, indicating robust demand for Trump-branded digital assets.
Both $TRUMP and $MELANIA are tied to Trump-affiliated entities. Notably, four-fifths of $TRUMP tokens are controlled by CIC Digital, a Trump business affiliate, and Fight, Fight, Fight, a group aligned with Trump’s ideological values. The website for $TRUMP coins states such coins are “expressions of support” and not investments.
Ethical and Regulatory Matters:
While people are enthusiastic, Trump’s participation in cryptocurrency continues to face plenty of criticism,
Crypto analyst Justin D’Anethan warned, “The official Trump token opens Pandora’s box of ethical and regulatory questions.” Similarly, cryptocurrency lawyer Preston Byrne predicted legal challenges, stating, “Someone will lose money, some lawyer will come up with a theory, and file.”
Trump’s crypto projects have also been driving the market higher. On inauguration day, Bitcoin touched $104,031, a 7% gain this month. The Solana blockchain, where $TRUMP and $MELANIA are hosted, touched an all-time high of $294.33 over the weekend.
Market analyst Grzegorz Drozdz said, “The launch of TRUMP and MELANIA cryptocurrencies has added significant momentum to the market.”
Politics Meets Crypto:
The meteoric rise of Trump-linked cryptocurrencies has reignited some familiar debates over the relationship between politics and speculative finance.
“Should public figures with substantial political influence have such sway in speculative markets? Regulators are unlikely to ignore this,” said D’Anethan.
Despite concerns, Trump Jr. was quick to celebrate the coins’ success via social media, calling $TRUMP the “hottest digital meme on earth” and hailing WLF as the “future of finance.”
The Road Ahead:
As Trump ushers in his self-proclaimed ‘crypto golden age,’ the fusion of politics and blockchain innovation is drawing both applause and scrutiny. Whether this marks a new chapter for the crypto world or opens the door to unprecedented challenges remains to be seen.
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