Aside from the upcoming inauguration, which is scheduled to take place on January 20, Donald J. Trump managed to capture the crypto community’s attention via a very surprising and extraordinary move made on Friday evening.
The meme coin that he and his team launched and promoted has skyrocketed in a spectacular fashion, becoming the second-largest in its field. Is that good or bad for the overall meme coin landscape and crypto as a whole?
The Bad
It has been less than two full days, but Official Trump, going under the ticker TRUMP, has become a top 20 altcoin on CoinGecko and CoinMarketCap and is even close to cracking into the top 10 on the latter. Its market capitalization has shot up to nearly $15 billion on CMC, and it could be even higher by the time you read this article.
This is a spectacular and never-before-seen type of surge for a cryptocurrency. It literally went from 0 to (almost) 100 in less than a whole weekend, making multiple savvy traders overnight millionaires. Its story continues to amaze even the most experienced crypto market participants, as it is now the second-largest rep of the meme coin space, which was already quite overcrowded.
But its rise has been met with the demise of many alternatives. CoinGecko’s meme coin chart shows that almost all competitors have bled out since TRUMP’s launch on Friday evening. On a daily scale, DOGE is down by over 9%, SHIB has plummeted by 10%, and PEPE has slumped by over 16%.
This only goes to show that crypto, and meme coins in particular, is a dog-eat-dog world. And the biggest and ‘baddest’ now is the Donald Trump-backed rep, which is taking everyone down.
The Good
Although it’s true that most meme coins, and even altcoins as a whole, are dumping hard today, TRUMP’s launch could actually be a blessing in disguise for them as well. After all, the upcoming US president has backed a crypto asset, which would probably mean that it will attract new investors to the market.
The craze is more than obvious now and could continue for days and even weeks, especially since his inauguration is 24 hours away. However, those market participants will eventually start seeking alternatives once TRUMP’s rally reaches an exhaustion point, which could benefit some of its competitors or other alts.
Let’s not forget that the president-elect made numerous pro-crypto promises during his campaign, which aim to propel the entire industry forward.
In conclusion, it’s too early to say whether Donald Trump’s official entrance to the crypto asset world will have positive or negative long-term consequences for the market. However, it’s certain that it will impact it big time.
