Donald Trump has been teasing crypto investors with Trump for quite a while; he launched the coin just before his inauguration, making it a hot cake for meme lovers. But right after his inauguration he distanced himself from the coin, and now again he posted a cryptic message where it said Trump is “the greatest of all.” After President of Argentina Javier Milei’s meme controversy, everyone is taking a cautious stance over Trump’s coin; for instance, even after he promoted the coin, it just jumped 12%, which is much less compared to his endorsement of other coins in the past.
Wild Price Swings and Political Backlash
TRUMP, jumped 12% after Donald Trump hyped it on Truth Social, calling it “the greatest of them all.” The token quickly spiked from $10.93 to $12.25 before settling around $11.91. While this was the best-performing coin of the day, many are questioning its long-term potential.
Since its launch in January, TRUMP has seen many ups and downs. It briefly reached a billion-dollar market cap before crashing 75%. Now, the token is under political scrutiny, with House Democrats pushing for the MEME Act. Led by Rep. Sam Liccardo, the bill aims to ban federal officials and their families from profiting off meme coins. Critics argue that politicians, including Trump, should not be allowed to promote cryptocurrencies for personal gain.
SEC’s Stance on Meme Coins
Despite concerns, the SEC has clarified that meme coins like TRUMP are not considered securities, meaning they are not under its control. This lack of regulation raises questions about investor protection and whether these tokens are being used for market manipulation.
Is It a Pump-and-Dump?
Not everyone in the crypto space is buying the hype. Analyst Brett Johnson went as far as calling TRUMP a scam, claiming investors have already lost over $12 billion. Meanwhile, another analyst, Orlando, pointed out that $1.5 billion worth of TRUMP tokens are set to unlock in April 2025. If a huge amount of tokens flood the market, prices could take a hit. He even speculated that Trump’s recent post could be an attempt to pump the price before a major sell-off.
Weak Market Reaction Signals Low Interest
Interestingly, despite being promoted by a sitting U.S. president, TRUMP only saw a 10% pump. Analyst Ash Crypto noted that in 2021, a single tweet about Dogecoin could send it soaring by 400%. This suggests that the current market lacks strong buying power, with investors being more cautious. According to him, the crypto space desperately needs a big catalyst to revive interest in altcoins.
With political scrutiny, upcoming token unlocks, and questions about legitimacy, TRUMP’s future is uncertain. It could keep rising if Trump continues to push it, but a potential crash looms if investors lose confidence. For now, it remains one of the most controversial meme coins in the market.
