Trump's Endorsement Boosts TRUMP Token 9%

The U.S. President Donald Trump has publicly endorsed the Official Trump (TRUMP) token, a Solana-based memecoin, on his social media platform Truth Social. In a post made on March 23, Trump described the token as “so cool” and proclaimed it as “the greatest of them all.” This rare direct reference to a memecoin by a sitting U.S. President sparked a significant reaction in the cryptocurrency market.

The endorsement led to a surge in the price of the TRUMP token, which quickly retreated hours after the post was made. The token’s price soared to a local high of $12.25, adding roughly $300 million to its market cap. Despite a slight pullback, the asset was still up 9% on the day, trading at $11.88 at the time of the post. This surge highlights the influence that public figures, particularly high-profile individuals like the U.S. President, can have on the cryptocurrency market.

The TRUMP token, launched just days before Trump’s swearing-in, operates on the Solana blockchain, chosen for its high speed and low transaction costs. The token has a total supply of 1 billion, with only 200 million released to the public. The remaining 800 million tokens are held by CIC Digital LLC, a Trump Organization affiliate, and Fight Fight Fight LLC, and will be gradually unlocked over three years. The token’s price initially rocketed from under $10 to past $70 within its first days of trading, hitting a market capitalization of over $15 billion. However, it is currently 84% away from its all-time high of $73.43 registered in January following a market-wide correction.

Despite attracting criticism from some U.S. politicians, the U.S. Securities and Exchange Commission (SEC) has clarified that meme coins like the TRUMP token are not securities and are, therefore, outside the agency’s jurisdiction. This endorsement follows Trump’s commitment to make the U.S. a “Bitcoin superpower,” including initiatives to create a strategic Bitcoin reserve, a move proponents regard as an important metric for Bitcoin adoption.

The surge in the TRUMP memecoin's value also sparked a debate on social media platforms, with some users criticizing the President for promoting the memecoin. Despite the criticism, the memecoin's value continued to rise, indicating that the market responded positively to the endorsement. This event raises questions about the potential for political figures to influence the cryptocurrency market and the implications of such influence on the market's stability and integrity. The endorsement by the U.S. President underscores the growing intersection between politics and the cryptocurrency world, where public figures can significantly impact market dynamics.