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Is there a connection between the shutdown of TikTok in the US and Trump’s cryptocurrencies?

Over the weekend, two events occurred simultaneously: the shutdown of TikTok in the United States, and the launch of Donald Trump’s official cryptocurrency.

The two things happened one after the other, and this coincidence of time might suggest the idea that they might be related in some way.

In fact, a few connections can be made, but there is also evidence going in the opposite direction.

The closure of TikTok in the USA and the possible connection to Trump’s cryptocurrencies

As widely expected, TikTok closed all of its operations in the USA yesterday (Sunday, January 19, 2025).

However, the closure did not last long, because in the evening the popular Chinese social network was reopened in the United States thanks to an agreement with Trump.

We must remember that Donald Trump is president of the United States of America only today, while the current president, Joe Biden, was yesterday.

The closure of TikTok in the United States yesterday was an arbitrary decision by the Chinese company.

But it all starts with a decision made by Biden several months ago to sell the Chinese company its activities in the United States to an American entity. The deadline set was exactly January 19, the day before the inauguration of the new president.

If Kamala Harris had won the November election, it may not have been possible to reach an agreement with TikTok, but with Trump it appears that an agreement was reached, albeit temporarily.

Although nothing is official yet, the circulating hypothesis is that Trump gave TikTok 90 days to sell at least 50% of its activities in the United States to a US entity. In theory, all of this should become official between today and tomorrow.

So the issue is not closed yet.

Trump’s cryptocurrency was launched shortly before TikTok was shut down in the US

On Saturday evening, before TikTok began suspending its services in the United States, Donald Trump publicly announced the launch of his official memoku coin, TRUMP.

The news made headlines around the world, and was clearly overshadowed by the closure of TikTok, thanks to the fact that there were already leaked hypotheses about the case being postponed for 90 days.

We must not forget that TikTok is a very popular and widely used social network, especially by Generation Z, the teenage generation. Recently, in different parts of the world, TikTok has been used to conduct mass political propaganda, mainly in favor of the right, the political side to which Donald Trump also belongs.

The two events occurred so close together that there is a suspicion that they may be related in some way.

On the other hand, since Trump announced his DeFi project many months ago, and won the election two and a half months ago, why wait until the last minute?

Reasons for Trump’s firing

In fact, there may be two reasons that could justify the launch of a memecoin Trump Right over the weekend that just ended.

The first, which is very simple, is that they wanted to capitalize on expectations for Trump’s inauguration in the White House, which will take place today.

In fact, Trump’s wife, Melania, Memecoin was launched yesterday as well, perhaps to strike the iron while it’s hot.

The second reason is that the US Constitution prohibits a sitting president from exploiting his inevitable popularity to do business, so yesterday was the last good day for Trump to promote an initiative such as launching his own memecoin.

In light of this information, it’s understandable why they decided to release these memes before Trump’s inauguration, but that doesn’t explain why they waited so long.

Trump price trend

At the time of its launch on cryptocurrency markets, the price of Trump’s official memecoin was around $7.

Within a few hours, it had already risen to over $30, and in just over 24 hours, it had also risen to over $70.

All this happened as news of TikTok’s closure spread in the United States of America, at a time when it was not yet known that TikTok would reopen soon.

Instead, just a few hours after the reopening, there was a slight decline in Trump’s price.

Note that the maximum price peak was reached just above $75, about twelve hours after the price crossed $70 for the first time. Once the extreme peak was reached, there was a decline to below $40, followed by a slight recovery above $50.

The current price is still well above the initial launch price, and is also higher than the first peak recorded above $30. However, it is already at -28% from the highs.

Although it is by no means certain that other speculative bubbles cannot inflate on this symbol, it appears that the bulk of the rally has occurred in the short term.

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