The digital assets business is poised to be a big winner in the second Trump administration, with Republicans vowing to advance policy changes that could boost the sector — and help it overcome longstanding concerns about its legitimacy.
But Trump’s move Friday to introduce a so-called memecoin – a crypto token with no real-world value that traders can invest in — has triggered alarm among investors and industry representatives in Washington that the new coin will provide ammunition to critics who accuse crypto of being rife with fraud and risk to customers.
The concern illustrates the risk Trump is taking by launching a new crypto product just days before his inauguration. Memecoins — a class of crypto sometimes referred to as “shitcoins” that include digital assets with names like Dogecoin and Fartcoin — are speculative assets that are highly volatile by nature. If investors lose money on the coin, it could become a liability for both Trump and the crypto sector.
Mother Jones reported: Donald Trump launched a multibillion-dollar meme coin just days before taking office and instantly saw his net worth balloon. But then, as the initial excitement passed, the value plunged and occasionally spiked again through the first roller-coaster of Trump’s second presidency.
Despite the optimism of some crypto enthusiasts that the $TRUMP coin’s debut Friday heralded a new era of automatic crypto riches, the value of the coin had plummeted to around half of its weekend high of $72.62 by the time Trump was sworn in Monday.
Meme coins have no intrinsic value or particular usefulness as a currency but serve more as a cultural signifier. They usually are based on an internet joke, such as the internet’s fascination with the doge dog (Dogecoin), or make use of a celebrity’s image. While real money can be made riding the speculative highs and lows of meme coin trading, it’s also one of the sectors of the crypto world most pronto bubbles and subsequent collapses.
Bitcoin Insider reported: President-elect Donald Trump has ventured into the cryptocurrency arena by launching a new meme coin #$TRUMP, just days before his inauguration. This Solana-based token has garnered significant attention, reaching a market capitalization of approximately $13 billion within two days of release.
The token’s price also remains impressive, even with the notable drop from $72.24 to $44.8, but it has managed to regain $57.59 for now.
In my opinion, cryptocurrency is something that can change its value based on the market for it. This could result in people losing their money to buy cryptocurrency.