A Coinhero store in Hong Kong displayed a cartoon image of U.S. President-elect Donald Trump holding a Bitcoin token on Thursday, December 5, 2024, to mark the cryptocurrency’s breakthrough to $100,000.
Paul Yang | Bloomberg | Getty Images
Bernstein said President Trump’s return to the White House is expected to usher in a golden age for cryptocurrencies in the United States, albeit a chaotic one.
Trump over the weekend meme coin launched, “Trump Official” The market capitalization rose to US$73 billion in two days and subsequently shrank by 50%. The move coincides with the departure of U.S. Securities and Exchange Commission Chairman Gary Gensler, an opponent of cryptocurrency startups with a harsh enforcement approach.
One day after Trump Coin was unveiled, First Lady Melania Trump launched her own meme coin Less fanfare. The high-profile news drew criticism from many on social media, who feared it was a bad look for an industry that has struggled to distance itself from its earlier days. Initial Coin Offering (ICO) Bubble, The boom in non-fungible tokens (NFTs) and Celebrity Cryptocurrency Endorsements This results in losses for investors.
Bernstein analysts led by Gautam Chhugani said this may be a short-term price to pay for the long-term goal of cryptocurrency innovation in a loose regulatory environment.
“No matter how you look at it, we believe a new chaotic era of crypto has arrived,” he said in a report released on Monday. “The president of the United States has his own coin. Our view is to treat this event as one A signal that a new era of cryptocurrency regulation has arrived and will invest in more valuable parts of the ecosystem.”
“Given that the previous regulatory regime in the United States was about cracking down on cryptocurrency builders and taking enforcement actions against token-related activities, the president’s launch of tokens is a huge social signal to American builders: Build in the United States and don’t be shy about launching tokens. coins,” Chhugani added.
On Tuesday, the Trump meme token was trading at about $38.41, down nearly 50% from its high.
Disclaimer about Trump Coin website stating that it “is intended to express support for and participation in the ideals and beliefs embodied in the ‘$TRUMP’ symbol and associated artwork and… is not intended to be or be the subject of an investment opportunity, investment contract or security of any kind.”
According to the website, the number of tokens available will initially be 200 million and will increase to 1 billion within three years. Only 10% is available to the public, the other 10% is liquid, and 80% is owned by “Creators and CIC Digital”, an affiliate of the Trump Group.
Meme Coin is the latest fundraising campaign from the Trump team, which has also launched a series of two NFTs – Trump Digital Trading Cards. polygon Blockchain and Trump Bitcoin Digital Trading Card Bitcoin Blockchain—and DeFi platform World Liberty Financial on Ethereum.
