The world of cryptocurrency has just experienced an unprecedented event: the launch by Donald Trump, a few days before his inauguration, of a cryptocurrency in his name: $TRUMP.
Donald Trump, a few days before his inauguration as president of the United States, has just launched his own cryptocurrency. In less than 48 hours, this digital token reached a staggering valuation of $12 billion. Even the most seasoned in the crypto world were taken by surprise.
What exactly is $TRUMP?
$TRUMP is what we call in the jargon a “ same corner“, that is to say a cryptocurrency created around a personality or a cultural phenomenon.
Unlike Bitcoin, which is used to make payments or Ethereum, which allows you to create decentralized applications, $TRUMP has no particular technical use. Its value is essentially based on its popularity and the enthusiasm it arouses.
It was launched on the Solana blockchain, a platform recognized for its speed and low transaction costs, ideal for managing a large number of simultaneous exchanges.
The technical structure of $TRUMP is relatively simple, but technical.
A billion tokens have been created in total, of which only 250 million are currently in circulation.
The particularity lies in the distribution: 80% of the tokens are held by CIC Digital, an entity affiliated with the Trump Organization.
This artificial scarcity, combined with strong demand, largely explains the price explosion.
The tokens can be purchased on major exchanges, such as Kraken, Binance or Coinbase, which quickly added the token to their catalog in response to massive demand.
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Why was the Solana blockchain chosen?
The choice of Solana is not a coincidence. This blockchain is capable of processing up to 65,000 transactions per second with minimal fees, where Bitcoin processes around 7.
This technical capacity was essential to handle the massive influx of buyers.
The impact was such that Solana's price jumped 16%, going from $220 to $260 in a few hours.
This domino effect also benefited decentralized exchange platforms based on Solana, such as Raydium and Jupiter, which saw their valuations increase significantly.
What are the risks for investors?
The main risk lies in the concentration of tokens. With 80% of tokens held by a single entity, the risk of market manipulation is real.
-These tokens are scheduled to be unlocked gradually over a period of 3 to 12 months, which could create significant downward pressure on the price.
Moreover, like all same cornerthe value relies largely on market sentiment and the popularity of the project, making prices extremely volatile. It is essential to understand that investing in this type of asset carries a risk of total loss.
What impact will this have on the political world?
This initiative could set a major precedent in the political world.
We are potentially entering an era where political figures could use cryptocurrencies as a new financing and mobilization tool. This raises important ethical questions about the mix between finance and politics.
Regulators, particularly in Europe, are observing this phenomenon carefully, they fear that it will create a dangerous precedent for financial stability.
The reaction is mixed.
Some experts see it as a financial innovation, capable of redefining the relationships between public figures and their supporters.
Others, like Michael Saylor, president of MicroStrategy, worry about a future president getting into this type of business just before his inauguration.
Wall Street observes this fusion of politics and decentralized finance with a mixture of fascination and concern.
What can we expect for the future?
The $TRUMP experiment could mark the start of a new era in decentralized finance.
If success continues, we could see a wave of “ personalized tokens » launched by celebrities, athletes or brands.
However, this proliferation also risks diluting the credibility of the entire crypto sector.
Remember that the arrival of Donald Trump in power marks a radical turning point in the approach to cryptocurrencies in the United States. The new president makes no secret of his intention to make America a haven for cryptos.
The European Union, through its MiCA (Markets in Crypto Assets) regulation, adopts a significantly more restrictive approach. It attempts to regulate not only existing cryptocurrencies, but also to anticipate future innovations, at the risk of nipping the sector in the bud.
