Over the weekend, US President-elect Donald Trump took the cryptocurrency industry by storm with an unexpected launch. Trump announced on social media that he would launch the official TRUMP memecoin on the Solana blockchain last Friday, setting off a multibillion-dollar frenzy that lasted for three days and sparked community backlash.
Cryptocurrency Market in the “Memecoin Era”
Ki Young Joo, Founder and CEO of CryptoQuant, subscriber His thoughts on the weekend madness, declaring that “Trump inaugurated the era of memes.” According to X, “financial markets have always been about chasing memes,” and following trends is “nothing new” for financial investors.
Joe pointed out that the emergence of the Internet and social media made the dissemination of ideas faster and enabled them to reach a wider audience. He also highlighted that cryptocurrency exchanges have already opened the door to the “era of retail investing,” where people are taking a more hands-on approach rather than “putting their money in banks or index funds.”
CryptoQuant CEO weighs in on Trump memecoin frenzy. Source: Ki Young Ju on X
As a result, inexperienced investors follow trends, listen to influencers, and learn from what others are doing. “Retail investors are unlikely to suddenly become savvier about investing, and without government regulations, herd behavior around trendy keywords will not stop,” he said.
“The Trump administration seems less interested in regulating this phenomenon and more inclined to profit from it,” the CEO believes, noting that their approach is “use it if it is unavoidable.”
Furthermore, he added that celebrity cryptocurrencies are just one form that meme currencies can take, stressing that “the fundamental fact that financial markets behave like memes is not going away, so it is worth thinking about how to make the most of it.”
Joe believes the next president will “likely use” his cryptocurrency holders as a “strong community base for collective action,” adding that the value of cryptocurrencies will depend on what Trump does and is unlikely to reach zero unless the president pulls the rug out. On his “passionate fan base”.
If a popular coin issuer avoids dodgy and takes responsibility for their sales, it won’t be as harmful as you think. Even Bitcoin had its fair share of pyramid scheme promoters in the early days, as it was sold to elderly investors. Now, with prices skyrocketing, these scammers are starting to call themselves “visionaries.”
He concluded that regardless of community sentiment, the ongoing wave “cannot be stopped — at least until 2028,” suggesting that investors should prepare for the next wave.
The Trump symbol craze will continue
Despite initial investor concerns about a hacking scam, Trump’s official token saw a meteoric rise just hours after its launch, reaching a market cap of $6 billion by Saturday morning.
Throughout the next day, the US President’s official memecoin rose to an all-time high (ATH) of $75 and a market cap of $15 billion. The token overwhelmed the cryptocurrency market, with only a few cryptocurrencies following suit. Amid the weekend rally, Bitcoin (BTC) turned the $102,000 resistance level into support, while Solana (SOL) reached a new ATH of $270.
However, the unexpected launch was met with heavy criticism from the community. Cryptocurrency investors have expressed concerns and discontent over X, with some members suggesting that the token could harm the industry’s reputation.
Meanwhile, others have described the incoming president’s memecoin project as a “hoax.” As Bitcoinist reported, popular internet sleuth Coffeezilla expressed his doubts on social media. “Trump’s memecoin drop two days before he takes office is bad business,” he stated, adding that “the new SEC/DOJ ensures no prosecution.”
Criticism increased Sunday afternoon when incoming First Lady Melania Trump announced the launch of her meme coin, Melania, on Solana. After the launch, the market saw a 6% correction, with Bitcoin’s price briefly falling below $100,000, and Trump’s price falling 30% in one hour from its ATH price to $49.
However, the market is starting to recover amid the Inauguration Day rally. The major cryptocurrency reached a new ATH of $109,000 earlier before falling just below the previous ATH range. Some analysts expected Today is “very volatile in both directions” but he remains optimistic about the coming months with the new crypto-friendly administration.
Bitcoin's performance in the one-week chart. Source: BTCUSDT on TradingView
Featured image from Unsplash.com, chart from TradingView.com
