The most modern President-Elect of the US, Donald Trump, has resulted in a lot controversy within the crypto condo after launching his Reliable Trump (TRUMP) meme coin on Solana (SOL) two days sooner than the inauguration.
The announcement on January 17 via Trump’s Truth Social account acknowledged that the token became once for him and his “winning.” The preliminary speculation pointed in opposition to a that you just can also reflect hack, but the confirmation came rapidly after, with Trump becoming the first U.S. president to endorse a meme coin.
Critics elevate ethical considerations
Like others, the TRUMP meme coin has been criticized for having no real-world software. Critics and analysts gain pointed out that the spend of the Trump administration’s build to endorse cryptocurrency is questionable.
YouTuber Stephen Findeisen, in most cases identified as Coffeezilla, criticized the timings of the project. In a Jan. 18 post, he known as the starting up of the coin ‘unethical’ and raised considerations with the reported 80% of the money being dispensed to Trump’s inner circle. Findeisen described the topic as ‘corrupt work’ attributable to the hazards of vital losses for inexperienced merchants.
> dropping TRUMP memecoin 2 days sooner than becoming president is corrupt work
> novel SEC/DOJ guarantees no prosecution
> 80% of tokens vest to insiders DURING the presidency
> most ppl dropping money shall be MAGA who aren’t crypto native
> *can also composed* be against the law but crime is correct now ig?— Coffeezilla (@coffeebreak_YT) January 18, 2025
Peter Schiff, an economist who has consistently brushed off cryptos, likened the coin to Bitcoin in sarcasm while making stress-free of it. Dilapidated Trump aide Anthony Scaramucci known as it “corruption” and warned it would perhaps also negatively affect the broader crypto market.
Crypto-influencer Max Schwartzman acknowledged that it’s miles that you just can also reflect that Trump’s account became once hacked, because the TRUMP COIN net plan has the an identical affect as Trump’s old NFT project. Others, love 0xCygaar, pointed out that the two gain an identical technical constructions, which handiest added to the hype.
Good ample yeah the novel Trump memecoin net plan is deployed almost identically to his old NFT net plan.
Identical cloudflare setup, same deployment with Heroku, same SSL certificates issuer.
Very an identical HTML constructing as sooner than. pic.twitter.com/u1zLD7Vcv7
— cygaar (@0xCygaar) January 18, 2025
Explosive growth amid controversy
After the starting up, the token handiest took quarter-hour to attain a market cap of $400 million. The birth furthermore saw SOL, Solana’s native token, upward push to an all-time excessive of $267 attributable to the fun spherical the TRUMP token.
However, the TRUMP coin has soared and has recorded bigger than 12,000% adoption after its birth regardless of the backlash it has obtained. The token’s price reached shut to $35 and then hovered spherical $29, taking the market capitalization to $5.98 billion. Successful merchants gain made loads of cash, with one of them reportedly making $50,000 to $1.1 million inner a few hours.
However, doubts remain regarding the prospects of the token within the long bustle. In the meantime, handiest 20% of the 1 billion TRUMP money are in circulation with the final 80% to be released over the next 36 months.
In the meantime, the first twenty holders have 87.02% of the total token provide, that formulation handiest 12.97% stays for all various merchants and merchants. The developer wallet by myself is estimated at about $15.5 billion, which raises questions about builders controlling and manipulating the market.
Some critics gain claimed that this fashion of possession modify weakens the token in question. Crypto analyst JRNY Crypto raised considerations regarding the shortcoming of concrete recordsdata coming from Trump’s advisors to give a boost to the project.
The FOMO on the TRUMP token pushed many merchants into hasten, causing a upward push within the Solana label and an expand in its on-chain activity. Analyst Will Clemente pointed to the chaos, bringing up that merchants gain been dumping various sources to purchase into the TRUMP phenomenon. However, some analysts gain expressed topic that the immediate tempo can also consequence in a immediate tumble.
Never viewed anything else love this, SOL ripping and all the pieces on chain nuking as folks alarm sell to fomo into Trump’s memecoin. What goes on.
— Will (@WClementeIII) January 18, 2025
