Trump's post sent shockwaves through the cryptocurrency market, unprecedented. This article will analyze the impact of this event on various potential stakeholders and the capital market, including whales, new users, the Solana ecosystem, and Trump himself.

Author: Weilin

Source: PANews

A normally calm Saturday morning was shaken by Trump's post, sending unprecedented shockwaves through the cryptocurrency market. Starting at 10 am on January 18th, Trump posted a TRUMP meme coin on the social platforms Truth Social and X, triggering a massive response in the crypto market. The price of the official TRUMP meme coin skyrocketed. According to GMGN data, its market cap briefly exceeded $30 billion that evening. The next day, it continued to rise, surpassing Dogecoin's total market cap, reaching $82 and a total market value of $82 billion.

This meme coin has remained the focus of the crypto market. Based on Forbes rankings, if the TRUMP token price reaches $270, Trump would become the world's richest person. Meanwhile, the issuance of the TRUMP token and the underlying capital operations have also drawn high attention from regulatory organizations, crypto professionals, and investors.

This article will analyze the impact of this event on various potential stakeholders and the capital market, including whales, new users, the Solana ecosystem, and Trump himself.

Reaching $100 Billion Market Cap in a Flash, Whales Benefit, New Users Enter

When Trump launched the token, the crypto ball was already in full swing. David Sacks, the crypto czar of the Trump administration, stated, "The reign of terror against crypto is over, and the dawn of American crypto innovation is just beginning."

A day earlier, the launch of the TRUMP token was initially mistaken for a hacker attack on Trump's social platform. However, as time passed, its market performance completely changed this initial misunderstanding.

One hour after the token launch, GMGN market data showed that the TRUMP market cap had exceeded $3 billion, with the price at $3.25. The top 10 holders owned about 89.61% of the tokens, with the top address holding 80%. Subsequently, the TRUMP token's market value soared, achieving a "flash" over $100 billion. As of 5 pm on January 19th, the fully diluted market cap of the official TRUMP meme coin had surpassed Dogecoin (DOGE), reaching over $59 billion, while DOGE's FDV was $55.89 billion. After listing on multiple exchanges, many on Twitter even believed TRUMP's next target was $100 billion.

Due to the overwhelming hype, not only were on-chain transactions congested, but Binance also temporarily suspended SOL withdrawals due to its hot wallet being drained, and the SOL withdrawal channel between the Solana network and the BNB Chain was temporarily closed.

It is worth noting that according to the introduction on the official website GetTrumpMemes.com, the initial purchase of TRUMP requires going through Moonshot, which supports traditional payment methods like Apple Pay, Visa, Mastercard, Venmo, as well as crypto payments like USDC and SOL. The convenience of these payment options has lowered the entry barrier for ordinary investors, further fueling the TRUMP token's frenzy.

As the token price soared, TRUMP token investors reaped massive returns from the rapid price increase. According to on-chain analyst Yujin's monitoring, whale @XXAntiWar has already profited $10.19 million on $TRUMP. The 10th largest holding address used 61,205 SOL ($14.18M) to purchase 1.271 million $TRUMP at $11.15, and has not sold a single one. The unrealized profit has reached $21.41 million (+151%). Many other active on-chain investors have also harvested huge returns, as seen in the article "Who are the millionaires from $TRUMP profits? The winning KOLs and the disappointed ETH Maxis".

TRUMP is not a MEME coin released on Punp.fun, but one that has been pre-coordinated with Moonshot and Jupiter, and certified and listed in a timely manner. The hot trading of TRUMP has also rapidly boosted the Solana ecosystem, with decentralized exchange (DEX) platforms like Jupiter, Raydium, and Meteora, as well as Moonshot, which has surged to become the top finance app on the US Apple App Store, stating they have attracted over 400,000 new users within 24 hours. Additionally, OKX Web3 and GMGN, among other on-chain tools, have also benefited from this massive traffic.

On January 19th, the price of SOL broke through $290, reaching a new high, and the trading volume and activity of Solana ecosystem platforms surged sharply. According to @adam_tehc's data dashboard, on the day of the TRUMP frenzy, the on-chain MEME trading tool GMGN recorded about $153 million in Solana chain trading volume on January 18th, capturing $1.52 million in fees, both setting new highs. As of early January 19th, GMGN had cumulatively captured over $34.6 million in fees. The TRUMP token's bullish performance has further fueled the rise of the Solana ecosystem, with many users flocking to the Solana chain for trading and investment.

Meanwhile, some crypto users have expressed their views on the DEX trading experience: the on-chain era has just begun, and CEXes will gradually rely on the on-chain community to sustain their survival and development. This transformation is expected to be completed in the current bull market and may accelerate during Trump's presidency. As the market advantage of CEXes gradually shrinks, the importance of on-chain activities will become increasingly prominent. The real market winners will no longer be those who rely on traditional resources, but those who can stand out through on-chain data analysis and strategies. This disruptive force will trigger massive changes in various fields, driving a transformation of the market landscape.

In fact, facing such heat, CEXes have also been quick to respond. On January 19th, OKX, Coinbase, and Binance all listed TRUMP, pushing its price to $80.

Trump's Personal Net Worth Increases, Inauguration Ceremony Gains More Attention

Affected by the TRUMP craze, according to NFT Floor data, as of the afternoon of January 19th, the floor price of the Trump NFT series "Trump Digital Trading Cards" has increased by 346% in 7 days, with a 7-day trading volume of $2.81 million, up 38,218%.

According to the official TRUMP token website, Trump Group's subsidiaries CIC Digital LLC and Fight Fight Fight LLC jointly hold 80% of the circulating tokens, or 800 million TRUMP. The circulating supply is expected to increase to 1 billion in the next three years. This means that as the token price rises, the owners will see significant gains. CIC Digital LLC has already started selling a series of other merchandise, such as Trump-branded sneakers, perfumes, and digital trading cards.

The website does not mention who the specific beneficiaries of these profits will be. Due to the three-year lock-up plan, they cannot sell all their held tokens at once.

Arkham Intelligence pointed out on X that if CIC Digital LLC and Fight Fight LLC (which together own 80% of the TRUMP supply) are actually owned by him, Donald Trump's net worth has increased by $22 billion overnight. Forbes estimates his net worth as of November 2024 when he is elected president to be $5.6 billion. If this is accurate, the addition of the meme coin holdings would increase his assets by 5 times.

It is worth mentioning that Trump's son Eric Trump expressed support for the TRUMP token on social media. "I'm so proud of our continued achievements in crypto. $Trump is currently the hottest digital meme on Earth, and I truly believe WorldLibertyFi will revolutionize DeFi/Cefi and become the finance of the future. We're just getting started!"

Behind this event, the issuance of the TRUMP token is not a simple cryptocurrency project, but rather a re-monetization of Trump's personal brand. Trump has always been known for his ability to link his personal brand to various business projects, from Trump University to Trump Hotels, and now to digital trading cards (NFTs). The launch of the TRUMP token is actually a continuation of this brand operation model. The difference is that this time it uses the medium of cryptocurrency, which gives this event an unusual capital attraction.

Crypto market sentiment is high, but there is also uncertainty about the evolution of the landscape

One day after the token was issued, this event has already sparked widespread moral controversy. Crypto journalist Coffeezilla criticized Trump's behavior in issuing the TRUMP coin, listing several key points.

1. Launching a memecoin of Trump just two days before becoming president is a despicable act

2. The new SEC/DOJ policy guarantees that there will be no prosecution

3. 80% of the tokens are allocated to insiders during the president's term

4. Most of the losers will be MAGA supporters who are not crypto natives

5. What should have been a crime now seems to be legal?

1confirmation founder Nick Tomaino interpreted the event of Trump launching TRUMP: The shift in atmosphere from the Biden anti-crypto era to the Trump era is great. Trump owns 80% of the TRUMP coin stake and launched it just hours before the inauguration, which is predatory, and many people may be harmed. Trump should have airdropped it to the public instead of using it to enrich himself or his team. Currently, it looks like an FTX token.

In addition, the way TRUMP coins were issued raises questions about whether there are conflicts of interest. Currently, Trump-related products include the DeFi project World Liberty Financial, golf clubs and resorts, hotels and real estate, a listed media company, royalty-bearing sneakers, and NFTs, all of which pose risks of illegal conflicts of interest.

Alliance DAO founder Qiao WANG criticized that it's cool for the president to fairly launch a meme coin, and he fully supports it; but launching a currency where 80% of the supply is provided to insiders completely changes its nature, which is the textbook definition of fraud.

Through the issuance of TRUMP coins, Trump theoretically quickly accumulated a huge fortune, which also attracted the attention of regulatory agencies. According to Bloomberg, multiple institutions believe that Trump's issuance of the Meme coin TRUMP is unethical. Danielle Brian, executive director of the nonpartisan government oversight project (Project on Government Oversight), said that memecoins are usually unrelated to any underlying business, and therefore highly speculative for investors, while potentially bringing huge profits to the founders, further crossing the line. Other groups expressing concerns include the nonprofit Campaign Legal Center and the Citizens for Responsibility and Ethics in Washington.

Crypto industry veteran Arthur Hayes commented: This is the launch of the political memecoin market. Any politician who is not afraid of public opinion will launch their own memecoin. The token economics is fugazi (note: a derogatory term, fake stuff), but these "shits" will develop into a $100 billion market.

However, venture capitalist Chris Burniske expressed a positive attitude, saying that he is uneasy about the token distribution, but sees its huge potential for future innovation, and that it is similar to the impact of the "The DAO movement" on the ICO boom in 2016.

Of course, TRUMP has successfully brought new blood and new users to the crypto market. Overall, the rapid appreciation of TRUMP and the operations behind it have not only quickly increased Trump's personal wealth, but also focused the crypto market's attention on this new meme coin that intertwines politics and crypto. As the market continues to evolve, the TRUMP coin event may also become an important milestone in the evolution of the crypto industry landscape, reminding us that while chasing quick returns, we also need to carefully face market risks and moral considerations. How the crypto industry will develop in the future, we can foresee that the balance between innovation and regulation will be a core issue worth watching in the coming years.