Crypto Market Sees Sudden Surge as Trump-Linked Meme Coin Launches on Solana
The cryptocurrency market witnessed a sudden and unexpected surge over the weekend, with Solana’s SOL token skyrocketing by 12% to $247.76 on Saturday, according to Coin Metrics. This sudden increase came on the heels of the launch of a new meme coin, “Official Trump” (TRUMP), which was announced on President-elect Donald Trump’s social media accounts and issued on the Solana blockchain.
A New Era of Innovation in Crypto?
The launch of the TRUMP coin comes ahead of Trump’s inauguration on Monday, which is widely expected to usher in a new era of innovation and productivity in the crypto industry. The move also coincides with the end of Gary Gensler’s term as chairman of the Securities and Exchange Commission, a development that could have significant implications for the crypto industry.
Solana’s Rise to Prominence
Solana, the fourth-largest cryptocurrency by market cap excluding stablecoins, was created in 2020 as a faster and cheaper alternative to Ethereum. It has since become a popular platform for hosting meme coins, decentralized finance (DeFi) projects, and gaming applications. The token has gained immense popularity, with asset managers seeking to issue exchange-traded funds (ETFs) tracking its price.
ETFs on the Horizon
The decision deadline for potential ETFs from Bitwise, VanEck, 21Shares, and Canary is approaching on January 25. ProShares has also filed for four different ETFs based on SOL. If approved, these ETFs could attract a significant amount of assets, although JPMorgan predicts that they may only attract a fraction of the assets that flowed into bitcoin ETFs in their first year of trading.
The “Official Trump” Coin
The TRUMP coin was announced on Trump’s X and Truth Social accounts late Friday night, coinciding with the Crypto Ball, a celebration of his return to the White House held by crypto industry leaders in Washington, D.C. The coin began trading at $4.29 and has since surged 604% to $30.22, according to CoinGecko data. A disclaimer on the coin’s website states that it is not intended to be an investment opportunity, but rather an expression of support for Trump’s ideals and beliefs.
Fundraising Efforts
The TRUMP coin is the latest fundraising effort from team Trump, which has also launched two NFT collections and a DeFi platform, World Liberty Financial, on Ethereum. The coin’s website states that 200 million coins are initially available, with another 800 million to be released over the next three years. Only 10% of the coins are available to the public, with the remaining 90% held by creators and affiliates of The Trump Organization.
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