The CEO of digital asset analytics firm CryptoQuant outlines what gives President Donald Trump’s newly launched memecoin value.
Trump’s official memecoin (TRUMP) launched on Friday and its price has rapidly risen to become a top 30 cryptocurrency asset by market cap.
The asset is trading at $40.47 at the time of writing and is down nearly 40% over the past 24 hours but is up more than 518% since Friday. It already has a market capitalization of over $8.1 billion.
CryptoQuant CEO Ki Young Joo He says Retail traders believe that financial markets are about following trends and “chasing memes.”
“What gives the Trump Coin value? Unlike traditional securities, which pool investments for productive activities, celebrity coins do not directly create value. Instead, Trump is likely to use coin holders as a powerful community base for collective action. If you think about Investing in a Trump coin, the main question is how much influence his community will gain during his presidency. The value of the coin depends entirely on what Trump does, and with his passionate fan base, the value of the Trump coin is unlikely to decline Zero, unless he intentionally pulled the rug.
Young Joo says the value of a memecoin depends on whether the community associated with it acts in ways that benefit society.
“A well-intentioned community can turn a meme coin into a valuable asset. But on the other hand, it would be terrifying if a cult or terrorist group used a meme coin to build a large following.
The CryptoQuant CEO also predicts that more memecoins will be launched under the Trump administration.
“The Trump administration has embraced free markets rather than regulated ones, and over the next four years, we are likely to see all kinds of experiments with LGBT communities in the cryptocurrency space. This wave is unstoppable – at least until 2028.”
Never miss an opportunity – sign up to get email alerts delivered directly to your inbox
Check price action
Follow us on X, Facebook and cable
Browse Hodl’s daily mix
 
Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should conduct due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated image: mid-flight
