TRUMP Xing, Solana King, and Behind the President’s Coin Issuance: Who is the Winner and Who Is Benefiting? What impact will it have on the crypto market?

Author: Weilin, PANews

On an otherwise peaceful Saturday morning, a post from Trump gave the cryptocurrency market an unprecedented shock. Starting at 10 a.m. on January 18, Trump successively released a meme coin called TRUMP through the social platform Truth Social and the X platform, triggering a huge response in the encryption market. The price of the official meme coin called TRUMP has skyrocketed. According to GMGN data, the market value once exceeded 30 billion US dollars that night. It continued to rise the next day, with the full-circulation market value surpassing Dogecoin, with the price touching US$82, corresponding to a total market value of US$82 billion.

This meme coin continues to dominate the crypto market. Based on Forbes ranking data, if the price of the TRUMP token rises to $270, Trump will become the richest man in the world. At the same time, the issuance method of TRUMP coins and the capital operations behind it have also attracted great attention from regulatory organizations, encryption professionals and investors.

This article will analyze the impact of this incident on potential interested parties and the capital market from multiple angles. The former includes whales, new users, Solana ecology, Trump himself, etc.

The market value of Express is reaching tens of billions and is heading

towards hundreds of billions. Giant whales are benefiting and new users are entering the market.

When Trump issued the currency, the crypto dance party was held. David Sacks, the Trump administration’s crypto czar, said, “The reign of terror against cryptocurrencies is over, and the beginning of crypto innovation in the United States has just begun.”

One day ago, the release of TRUMP coin was once mistaken as a hacker attack on Trump’s social platform. However, over time, its market performance completely changed this initial misunderstanding.

One hour after the currency was issued, GMGN market data showed that the market value of TRUMP exceeded US$3 billion, and the currency price was reported at US$3.25. The top 10 largest holders held approximately 89.61% of the tokens, of which the address with the largest position held 80% of the tokens. . As time went by, the market value of TRUMP tokens soared, achieving a "speed-through" market value of tens of billions of dollars. As of 5 p.m. on January 19, the FDV of Trump’s official meme currency has surpassed Dogecoin (DOGE), exceeding US$59 billion, and DOGE’s FDV was reported at US$55.89 billion. After being listed on multiple exchanges, many people on Twitter even believe that TRUMP’s next target is US$100 billion.

Due to the popularity, not only were transactions on the chain stuck, Binance also temporarily suspended SOL withdrawals due to hot wallet withdrawals, and the SOL withdrawal channel between the Solana network and BNB Chain was temporarily closed.

It is worth noting that, according to the official website GetTrumpMemes.com, the initial purchase of TRUMP needs to be made through Moonshot, which supports traditional payment methods such as Apple Pay, Visa, Mastercard, and Venmo, as well as cryptocurrency payment methods such as USDC and SOL. The convenience of this payment method lowers the entry threshold for ordinary investors and further promotes the popularity of TRUMP coins.

Trump Token investors have reaped huge rewards from the rapid price gains as the token has risen. According to on-chain analyst Ember Monitoring, whale @XXAntiWar has made a profit of $10.19 million on $TRUMP. The 10th largest holding address used 61,205 SOL ($14.18M) to purchase 1.271 million $TRUMP at a price of $11.15 on the first day. None of them has been sold yet. The floating profit has reached $21.41 million (+151%). There are also many active investors on the chain who have reaped huge returns. "Who has made millions of dollars in TRUMP?" The winning KOL and the frustrated ETH Maxi.

TRUMP is not a MEME coin released on Punp.fun, but has coordinated with Moonshot and Jupiter in advance to be certified and launched as soon as possible. The popularity of TRUMP trading has also led to the rapid rise of the related Solana ecosystem, Jupiter, Raydium, Meteora and other decentralized trading platforms (DEX). Moonshot has become the top financial application on the Apple App Store in the United States due to TRUMP tokens, indicating that they are 24 It has attracted more than 400,000 new users within hours. In addition, on-chain tools such as OKX Web3 and GMGN have also become beneficiaries of this huge traffic.

On January 19, the price of SOL exceeded $290, setting a record high, and the transaction volume and activity of Solana ecological related platforms increased sharply. According to the @adam_tehc data panel, on the day TRUMP became popular, the on-chain MEME trading tool GMGN had an on-chain transaction volume of approximately US$153 million on Solana on January 18, capturing US$1.52 million in fees, both hitting record highs. As of the morning of January 19, GMGN has accumulated more than $34.6 million in fees. The hot market of TRUMP currency has further intensified the rise of the Solana ecosystem, and many users have flocked to the Solana chain to trade and invest.

At the same time, some crypto users expressed their views on the DEX trading experience: At the beginning of the on-chain era, CEX will gradually rely on the on-chain community to maintain its survival and development. This shift is expected to be completed during the current bull market and may accelerate during the Trump presidency. As CEX's market advantage gradually shrinks, the importance of on-chain activities becomes increasingly prominent. The real market winners will no longer be those players who rely on traditional resources, but those who can stand out through on-chain data analysis and strategies. This disruptive force will provoke huge changes in various fields and promote changes in the market structure.

In fact, in the face of such popularity, CEX has also been catching up. On January 19, OKX, Coinbase, and Binance listed TRUMP one after another and pushed the price of TRUMP to $80.

Trump’s personal net worth has increased, and the inauguration has

attracted more attention

Affected by the TRUMP craze, according to NFT Floor data, as of the afternoon of January 19, the floor price of Trump NFT series Trump Digital Trading Cards increased by 346% within 7 days, and the 7-day trading volume was US$2.81 million, an increase of 38,218%.

According to the official website of the TRUMP token, CIC Digital LLC and Fight Fight LLC, affiliates of the Trump Organization, jointly hold 80% of the tokens in circulation, or 800 million TRUMP. The circulating supply is expected to increase to 1 billion coins in the next three years. This means that as the price of the token increases, owners will see significant gains. CIC Digital LLC has begun selling a range of other merchandise, such as Trump-branded sneakers, fragrances and digital trading cards.

The website does not mention who will be the beneficiaries of these profits. Being restricted by the three-year unlocking plan, they cannot sell off all their holdings at once.

Arkham Intelligence noted on Forbes estimates the president-elect's net worth in November 2024 at $5.6 billion. If this is accurate, then increasing memecoin holdings would increase assets by 5x.

It is worth mentioning that Trump’s son Eric Trump expressed support for TRUMP currency on social platforms. “I’m extremely proud of our continued achievements in the crypto space. $Trump is currently the hottest digital meme on the planet, and I truly believe WorldLibertyFi will revolutionize DeFi/Cefi and become the future of finance. We’re just getting started!”

Behind this incident, the issuance of TRUMP coin is not a simple cryptocurrency project, but another realization of Trump’s personal brand. Trump has long been known for tying his personal brand to a variety of business ventures, from Trump University to Trump Hotels to digital trading cards (NFTs). The TRUMP coin launched this time actually continues this operating model of the Trump brand. The difference is that this time the medium of cryptocurrency is used, which gives this event an unusual capital appeal.

Crypto market sentiment is high, but there is also uncertainty about the

evolution of the landscape

One day after the coin was issued, the incident has triggered widespread ethical controversy. Crypto journalist Coffeezilla criticized Trump’s release of the TRUMP coin, citing several key points.

• Launching Trump’s memecoin two days before becoming president is really bad behavior
• New SEC/DOJ policy guarantees no prosecutions
• 80% of tokens allocated to insiders during presidential term
• Most of the people losing money will be MAGA supporters who are not crypto native
• It's supposed to be a crime, but now it seems like it's legal?

1confirmation founder Nick Tomaino explains Trump’s launch of TRUMP: The change in atmosphere from the Biden anti-encryption era to the Trump era is great. Trump owns 80% of TRUMP coin shares and launching it just hours before the inauguration is predatory and many people may be harmed by it. Trump should be airdropping on the people, not using it to enrich himself or his team. Currently it looks like an FTX token.

In addition, the way TRUMP coins are issued raises questions about whether it involves a conflict of interest. The products currently associated with Trump include DeFi project World Liberty Financial, golf clubs and resorts, hotels and real estate, listed media companies, sports shoes that can collect copyright fees, NFT, etc., all of which have brought him illegal conflict of interest principles. risk.

Qiao WANG, founder of Alliance DAO, criticized that the president’s launch of a meme currency is cool and fully supports it; but launching a currency that provides 80% of the supply to insiders completely changes its nature, which is a textbook scam. definition.

Through the issuance of TRUMP coins, Trump theoretically quickly accumulated huge wealth, which also attracted the attention of regulatory agencies. According to Bloomberg, many institutions believe that Trump’s issuance of Meme coin TRUMP is unethical. Danielle Brian, executive director of the nonpartisan Project on Government Oversight, said memecoins are often not tied to any underlying business, making them highly speculative for investors and potentially lucrative for founders. Profit, which pushes the boundaries even further. Other groups raising concerns include the nonprofit Campaign Legal Center and Citizens for Responsibility Ethics in Washington.

Crypto industry veteran Arthur Hayes commented: This is the launch of the political memecoin market. Any politician who is not afraid of public opinion will launch his or her own memecoin. These token economics are fugazi (note: derogatory term, fake stuff), but this "shit" will go towards $100 billion.

However, venture capitalist Chris Burniske expressed a positive attitude, saying he is uneasy about the distribution of the token but sees great potential for future innovation, saying it is similar to the impact of "The DAO movement" on the ICO craze in 2016.

Of course, TRUMP successfully brought new blood and new users to the crypto market. In general, the rapid appreciation of the TRUMP coin and the operations behind it have not only led to the rapid growth of Trump's personal wealth, but also focused the attention of the encryption market on this new meme currency intertwined with politics and encryption. As the market continues to develop, the TRUMP coin incident may also become an important symbol of the evolution of the crypto industry, reminding us that while pursuing quick returns, we also need to face market risks and ethical considerations prudently. As for how the future of the crypto industry will develop, we can foresee that the balance between innovation and regulation will be a core issue worthy of attention in the next few years.