Trump's Meme Coin TRUMP Sees Modest 12% Gain After His Promotion

Donald Trump, the former U.S. president, has been engaging with crypto investors through his meme coin, TRUMP, which he launched just before his inauguration. Initially, the coin gained significant attention from meme enthusiasts. However, Trump distanced himself from the coin shortly after his inauguration. Recently, he posted a cryptic message on Truth Social, describing TRUMP as “the greatest of them all.” This message came after President of Argentina Javier Milei’s meme controversy, which has led to a cautious stance from investors regarding Trump’s coin. Despite Trump’s promotion, the coin only saw a 12% increase, which is relatively modest compared to his previous endorsements of other cryptocurrencies.

Since its launch in January, TRUMP has experienced significant volatility, briefly reaching a billion-dollar market cap before crashing by 75%. The token is now facing political scrutiny, with House Democrats pushing for the MEME Act. Led by Rep. Sam Liccardo, this 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. 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 potential market manipulation.

Not everyone in the crypto community is convinced by the hype surrounding TRUMP. Analyst Brett Johnson has labeled TRUMP a scam, claiming that investors have already lost over $12 billion. Another analyst, Orlando, pointed out that $1.5 billion worth of TRUMP tokens are set to unlock in April 2025. If a large number of tokens flood the market, it could negatively impact the price. Orlando speculated that Trump’s recent post could be an attempt to pump the price before a major sell-off. Despite being promoted by a former U.S. president, TRUMP only saw a 10% increase, suggesting a lack of strong buying power in the current market. Analyst Ash Crypto noted that in 2021, a single tweet about Dogecoin could send it soaring by 400%, indicating that investors are now more cautious.

The future of TRUMP is uncertain, with political scrutiny, upcoming token unlocks, and questions about its legitimacy. If Trump continues to promote the coin, it could keep rising. However, a potential crash looms if investors lose confidence. For now, TRUMP remains one of the most controversial meme coins in the market.