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Investing.com — The cryptocurrency market is reeling following the launch of Donald Trump’s $TRUMP meme coin, which has seen its value rise by more than 11,000% since its launch on Friday. The coin reached a market cap of $66 billion on Sunday afternoon, marking Trump’s bold entry into the digital asset and commodity market ahead of his looming inauguration on Monday.
The $TRUMP coin was announced on Truth Social late Friday and was introduced to commemorate Trump’s victory in the presidential election. The coin, based on the blockchain platform, started with a limited supply of 200 million coins. According to the coin’s official website, the supply is expected to increase to 1 billion in years the next three.
TRUMP’s dramatic rise has caused a lot of chatter, but Nigel Green, CEO of the deVere Group, advises caution. Green said, “This is a resurgence of the meme coin trend we saw in 2021 and 2022, where many young, inexperienced investors got burned by extreme volatility. Without a doubt, investors will be burned by this chaos too.”
Green pointed to the hypothetical nature of the meme coins and warned that their value could change dramatically. He clarified that although great profits can be made by some, this type of investment is inherently very risky and unpredictable. He said, “Let’s be clear: this is more of a gamble than an investment. If you’re thinking of investing, you should have a sound, diversified, long-term plan first.”
The rapid rise of the $TRUMP coin highlights the dangers associated with meme coins, which are driven less by fundamentals and more by hype driven by social media. Green likened the event to gambling, saying that day traders may be participating, hoping to capitalize on Fear of Missing Out (FOMO). He said, “They usually don’t buy because they think the coin has intrinsic value. They buy because they hope others will drive the price higher, allowing them to sell at a profit.”
Green emphasized that this strategy comes with significant risks, and that the value of meme coins may fluctuate negatively. He added, “Understand the real risks of your money. This is not the same as investing in sound assets. Gambling is not the same as investing.”
Despite the buzz around $TRUMP, the launch could signal a crypto-friendly approach from the incoming Trump administration. There are speculations that Trump’s commitment to the area of digital assets coincides with his government’s potentially favorable stance on cryptocurrencies, which could lead to acceptance and renewal in the sector.
Green remains positive about the broader implications for the crypto market, saying that a pro-crypto system can accelerate the adoption of digital currencies and blockchain technology. He said, “This will have long-term benefits for the economy. But it is important to distinguish between imaginary meme coins and legitimate digital assets that provide real value and utility. part of the strategy different and not your original plan.”
As the market reacts to this latest development, the rapid rise of $ TRUMP underscores the broader debate about the role of cryptocurrencies in the current financial environment. Green concluded by saying, “Trump’s presidency is expected to usher in an era of pro-crypto policies, and while this may pave the way for positive growth for established assets like , it also raises questions about and the dangers of speculative trading fueled by social media hype.”
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