Trump’s Meme Coin Lures New Crypto Enthusiasts
The launch of former President Donald Trump’s meme coin has ignited a surge of interest in cryptocurrency, particularly among first-time buyers. While the tokens have created significant paper wealth, they have also drawn criticism from crypto veterans concerned about the industry’s credibility.
A Rapid Ascent
President Trump’s meme coin made an explosive debut, quickly ranking among the top 30 cryptocurrencies by market cap—a rare feat for a new issuance. Despite an initial price surge, the market has since stabilized, with the token down 9% over the past day and about 50% below its peak.
Data from Chainalysis, a blockchain analytics firm, reveals that most wallets holding the Trump token contain around $100 worth of assets. Notably, half of the token’s buyers created new blockchain wallets on Solana—the network hosting the coin—on the day of purchase, indicating many are new to cryptocurrency.
Who’s Profiting?
While most buyers are breaking even, a small group has reaped significant profits.
77% of buyers have earned modest returns (under $100).
60 major players have reportedly made over $10 million.
Chainalysis highlights that many investors bypass blockchain transactions by using crypto apps such as Crypto.com, Coinbase, and Kraken. This makes their activity invisible to on-chain analytics tools but showcases a broader trend of growing interest.
A Boost for Crypto Apps
The launch of the Trump token has driven a spike in crypto app downloads. Market intelligence firm Sensor Tower reports:
Crypto.com downloads jumped by 147% compared to the previous week.
Binance saw a 100% increase.
Coinbase experienced a staggering 665% growth compared to the same week last year.
Moonshot, a newer app promoted as the go-to platform for purchasing the Trump token, recorded the highest week-over-week growth among all crypto apps.
Industry Concerns
While the token has attracted new investors, it has also sparked criticism from crypto experts. Some argue that the meme coin trend undermines the industry’s credibility. Others are watching closely to see if the Trump Organization takes steps to enhance the token’s appeal, such as offering exclusive benefits for holders or burning unreleased supply to boost value.
What’s Next?
The Trump Organization, which retains ownership of up to 80% of the unreleased tokens, can begin selling additional supply in April. Whether this will sustain investor interest or dampen enthusiasm remains to be seen.
As the market watches for further developments, the Trump token’s success underscores the power of branding—even in the volatile world of cryptocurrency.
