As Donald Trump begins his second term as the President of the United States, Trump's backed cryptocurrency ventures are affecting the digital finance sector. According to World Liberty Financial (WLF), a Trump-associated blockchain initiative revealed that it had secured $1 billion in funding through token sales. Meanwhile, Trump's new meme coin, $TRUMP, has increased its market valuation by exceeding $10 billion, which has captured significant attention among investors and enthusiasts of meme coins.
A cryptocurrency venture by WLF was launched just two months before the US election by Donald Trump, his sons, and Mr. Steve Witkoff, and has quickly made its mark in the crypto space. The announcement of this success coincided with Trump's pledge for a golden era for cryptocurrencies which represents a contradiction with the regulatory approach under the Joe Biden administration.
The $TRUMP meme coin debuted on Friday night at the first-ever Crypto Ball in Washington, DC, held alongside inauguration events. The coin saw a rapid increase in its value, climbing from $10 on Saturday to $74.59 by Monday.
Melania Trump also entered the crypto world with her own meme coin, $MELANIA, which was launched on Sunday. The coin rapidly pushed its market value past $1 billion, signaling a strong focus on Trump-branded digital assets.
Both coins are tied to Trump-affiliated entities. Four-fifths of $TRUMP tokens are owned by CIC Digital, a Trump affiliate business group promoting its ideological values. The $TRUMP website insists that these coins are an expression of support rather than an investment vehicle.
While Trump's focus on cryptocurrency has drawn attention and excitement, it has also sparked ethical and regulatory concerns. Justin D Anethan, a crypto analyst said "The launch of the official Trump token opens a Pandora's box of ethical and regulatory questions. Similarly, cryptocurrency lawyer Preston Byrne predicted ahead some legal challenges noted: Someone will lose money and then some lawyer will come up with a theory, and file."
All the buzz surrounding Trump's crypto ventures has contributed to a broader market. This month, Bitcoin surged to $104,031 on inauguration day, with a 7 percent rise so far. The blockchain where both $TRUMP and $MELANIA were created reached an all-time high of $294.33 over the weekend.
Excitement over the new meme coins and the promise of loose crypto regulations under Trump's administration has fuelled investor enthusiasm. Market analyst Grzegorz Drozdz at Conotoxia Ltd said, "The cryptocurrency market gained additional popularity due to the launch of the Trump and Melania cryptocurrencies".
The rapid rise of Trumps crypto has sparked a debate over the intersection of politics and finance. Justin D Anethan said "Should public figures, especially those with such political clout, wield this kind of sway in speculative markets? Regulators are most likely to ignore this.
Despite this criticism, Trump's son Donald John Trump Jr. celebrated the coin's success on social media, calling $TRUMP the "hottest digital meme on earth" and proclaiming that WLF is the "future of finance".
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