For months it has been said that the possible arrival of Donald Trump to the White House would open a new future for the crypto sector. Now, with Trump taking office as the 47th president of the United States this January 20, and in just one day at the helm, many of these prophecies are fulfilled, although the president’s audacity may also cause some turbulence due to the path
In addition to encouraging the idea of creating a state reserve of bitcoin in the United States, Trump has shaken the market by launching cryptocurrencies or ‘memecoins’ of himself ($TRUMP) and his wife, Melania Trump ($MELANIA), which have reached a market capitalization of $8 billion and $862 million respectively, according to CoinMarketCap. This is in addition to his plans to designate cryptocurrencies as a national priority, according to Bloomberg.
This positive outlook on cryptocurrencies would be motivated, in part, by Vladimir Putin’s recent support for Bitcoin, suggesting that it can be used as a substitute currency to overcome the economic barriers imposed by other countries. Thus, Trump would seek to guarantee American dominance over the crypto ecosystem.
All of these actions shout from the rooftops the arrival of a new era for the crypto sector, marked by an optimism that is reflected in the more than $100,000 at which Bitcoin, the reigning cryptocurrency, was quoted in January.
Own tokens and NFTs
But, although it is all good news for crypto enthusiasts, the launch of its own meme coins has drawn criticism even from experts and entrepreneurs in the crypto space. Although the $TRUMP coin is promoted as a show of support for the ideas of the new legislature, and not as an investment, market specialists have been quick to warn of the danger of this move by the new president.
80% of the supply of this crypto is in the hands of a company, CIC Digital, affiliated with the Trump Organization, a businessman with an estimated net worth of 6.7 billion dollars.
Donald J. Trump
@realDonaldTrump
My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING! Join my very special Trump Community. GET YOUR $TRUMP NOW. Go to https://t.co/GX3ZxT5xyq — Have Fun! https://t.co/flIKYyfBrC
January 18, 2025 • 03:44
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21.9K
As much as this memecoin has been advertised as a kind of merchandising with which to show support for the new president, several experts point out that this interference between politics and risk investment is worrying. Furthermore, such an initiative can contribute negatively by expanding the unserious or trustworthy appearance that cryptocurrencies have in the psyche of many.
It is possible that Trump’s full-throttle entry into crypto will attribute to this sector an aura of opportunism and bias that does not benefit it, although for now, the Bitcoin rally speaks for itself. It should be noted that, in the past, the president accused Bitcoin of being a “scam” on Fox in 2021.
In the past, Trump has also sold his own NFTs, and since last year it has been known that Trump along with his children are preparing the launch of World Liberty Financial, a company that will provide crypto services, although it has not yet started operations.
Crypto, national priority
The idea of creating a federal crypto reserve that could also benefit blockchain projects of American origin such as Solana or XRP is gaining strength, and sources indicate that Trump is thinking about creating a cryptocurrency advisory council so that regulations and business interests can come together and benefit the sector. Ripple (creator of XRP) and the cryptocurrency exchange Coinbase have contributed to Trump’s inaugural fund, so the sympathies are clear.
The United States already has Bitcoin holdings in its state coffers. Bitcoin worth almost 20 billion dollars, obtained through raids on different criminal organizations.
With all this, the Bitcoin sector is preparing for a new era that could mark a golden age for cryptocurrencies since the birth of Bitcoin in 2009. However, geopolitics has reached decentralized finance and what in a sense is a tool of democratization of the economy, on the other it becomes a propaganda instrument. And to add insult to injury, it is also striking that the new efficiency commission in the US Government that will be headed by Elon Musk adopts the initials “DOGE”, the name of the famous memecoin of the Shiba Inu dog.
What Trump’s cryptos do demonstrate is that digital assets can serve as a way to express support for an idea, a movement or project. After all, cryptocurrencies are also used to donate to social causes or cryptocurrencies focused on ecological projects. This is an interesting avenue to explore within crypto, beyond mere speculation.
