Trump suddenly issued the Meme coin TRUMP, and his net worth soared several times

Author:Liam

Trump, the first elected encrypted president of the United States, is leading by example to show the world how MemeCoin can rewrite the rules of the world's capital markets.

On January 18, two days before taking office as president, Trump shocked the world by announcing his own "official" Memecoin TRUMP on his Truth Social and X accounts.

Trump wrote on his social media, Truth Social: "My new official Trump meme is here! It's time to celebrate everything we stand for: victory! Join my special Trump community. Coming soon Get your Trump memes."

Initially, the crypto community expressed doubts about the coin’s legitimacy. Some warned it could be a hacking or social engineering scheme. In fact, even Elon Musk is not sure whether Trump’s X account was hacked. But as Trump's posts stayed online and Polymarket data suggested there was only a 10% chance of an account being compromised, skepticism began to subside and the token's price continued to rise.

TRUMP opened at $0.1824 but rose more than 15,000% in 12 hours, trading at around $30 as of 10 a.m. ET, 12 hours after the token was released.

In the 12 hours since its launch, the market value of the MemeCoin project has soared to US$30 billion, which is approximately three times the market value of Trump Media Technology Group DJT (approximately US$8.7 billion). It's an exponential growth process, with its market cap rising by $1 billion every few minutes.

According to estimates from blockchain analysis platform Arkham Intelligence, "Cryptocurrency President" Trump's net worth skyrocketed to $28 billion overnight, thanks to the virtual currency "TRUMP" issued by Trump, which increased his estimated net worth. Assets increased by 400%. Trump affiliates CIC Digital LLC and Fight Fight Fight LLC control 80% of the supply, with the value of his cryptocurrency holdings alone soaring to $22.4 billion. Forbes estimated Trump's net worth at $5.6 billion last November.

Some industry investors say that because of cryptocurrency, Trump and his family have made more money in the past 12 hours than they have made in the past 50 years. Might this explain why he is so supportive of cryptocurrencies? Cryptocurrency prices are not yet factored in. Cryptocurrency prices will continue to rise under Trump.

Conor Grogan, head of product business operations at Coinbase, said in an article published on U.S. dollar liquidity." He added that the project received millions of dollars in seed funding from Binance and Gate, two exchanges that do not provide services to U.S. customers. Other analysts noted that 80% of the token’s circulating supply is allocated to Fight Fight LLC and CIC Digital LLC, both affiliated with the Trump Organization, with only 20% of the supply being split evenly between public investors and liquidity.

While Trump controls the vast majority of tokens, those tokens remain locked, meaning the US president is unlikely to “scam” millions of his most loyal fans… at least for now.

Separately, while the Solana-related memecoin pushed Solana’s market capitalization to a record $118 billion, the price of Ethereum, the main source of liquidity, saw an offsetting decline, with its market capitalization falling 5% overnight. , losing approximately $240 billion in value.

Trump’s comments come as the president-elect continues to support cryptocurrency initiatives. He had been outspoken about his skepticism of cryptocurrencies, but he made a U-turn during the campaign, promising to reshape the U.S. cryptocurrency landscape and make the United States the "global cryptocurrency capital." Paul Atkins, whom Trump nominated to be chairman of the Securities and Exchange Commission (SEC), is expected to lead those efforts. Atkins, a prominent cryptocurrency advocate and former U.S. Securities and Exchange Commission (SEC) commissioner, will replace Gary Gensler, who has been criticized for cracking down on the industry.

Finally, while many are excited to get in on the biggest momentum trade ever, one that eclipses even social media phenomenons like Gamestop and AMC, some like Bloomberg ETF senior analyst are skeptical , they believe that this particular attempt by Trump "seems exploitative" and is an "unforced error that is occurring."

Whether he's right or wrong depends on how long it takes for this bubble to burst.

Putting aside the bubble theory, we will think about the significance of this first "presidential currency issuance" moment in world history?

Global macro investor Raoul Pal said the signal here is the speed and simplicity of capital formation. The previous MemeCoin and ICO were just test cases, and the real capital game has not yet arrived, which will completely change the capital market.

Former Citigroup and current digital asset investment officer Jeff Dorman believes that the market has lost its rational understanding of $Trump and completely missed the rise.

First, he said, potential token issuers and investors in the United States have been concerned about "regulatory issues" for more than three years. Now, when the president himself is both an issuer and an investor, that concern can be completely eliminated.

Now, just because the president is issuing Memecoin does not mean that the world will only pay attention to memecoin. Trump validated the technology but described its single use. Potential issuers and investors can move beyond this limited use case

The Internet boom started with ".com companies," companies that existed solely because the Internet existed. But most have failed. The Internet only grew when non-Internet native companies started using it. Now, every company is a ".com company." Walmart, Domino's, JPMorgan Chase, etc. are now ".com companies."

The TRUMP token shows every company, municipality, university and personal brand that cryptocurrencies can now serve as a capital formation and customer onboarding mechanism. New York City will issue a token, Harvard University will issue a token, and Netflix will issue a token.

We are now officially bidding farewell to the “dot-crypto” phase of blockchain. All existing use cases for cryptocurrencies come from crypto-native companies, but in the future, the world will come up with innovative ways to use tokens.

When this happens, many currently useless tokens and projects will die, but the biggest and best projects will thrive with the support of millions of new investors, issuers, and users.

According to Jeff Dorman, if you are an investment banker, you have to start selling token ideas to clients.

Now. The immediate price action on Friday night showed that cryptocurrencies are now a joke and the only winners will be the blockchains that issue joke coins ($SOL). But this is short-sighted and the lack of liquidity over the weekend matters more than anything else.

Those calling this a "cycle top" have lost their minds. PTSD is real and all of you are so damaged by 2022 that you can’t imagine what will happen in the crypto-friendly environment to come.

Jeff Dorman finally said, So, to summarize - although I personally don’t care much about meme coins or TRUMP tokens, I am very concerned about the future application scenarios of blockchain. And the President of the United States has just given the green light to all future possibilities.