Despite his fall, TRUMP maintains a 400% appreciation since its launch.
Analysts warn that Trump is planting the seeds for the bullish cycle to become exasperated.
Although Donald Trump did not talk about bitcoin (BTC) and cryptocurrencies today at his presidential inauguration in the United States, his recent involvement with memecoins fuels enthusiasm in the market.
Three days ago, the president launched a memecoin called Official Trump (TRUMP), which soon became the third most capitalized meme cryptocurrency. Meanwhile, in its short lifespan, it has registered a price increase of more than 450%, despite having experienced a 7% decline today.
Likewise, his wife, Melania Trump, launched her memecoin, Official Melania Meme (MELANIA), which although it did not attract as much interest, has positioned itself among the 13 memecoins with the most capitalization. Both this and TRUMP are broadcast by the Solana network, as reported by CriptoNoticias.
“The initial message that Trump sends to the world of the cryptocurrency industry is that it is a casino and that celebrities, politicians and influencers can come in the coming days-months to make their own meme and the law does not suit them.” to fall”, comment the analyst Juan Rodríguez. Therefore, expect the memecoin market to go into a rage in the coming weeks.
However, he clarifies that not every trader can benefit from this possibility. To put it in perspective, he clarifies that “most of TRUMP’s initial buyers were insiders,” since they bought when the president had not yet made the launch public.
Furthermore, he emphasizes that both memecoins were launched on decentralized exchanges, before they expanded to centralized ones. These platforms are not used by the vast majority of traders. However, for Rodríguez, they will gain strength this year as this trend grows.
With this panorama, Rodríguez believes that the typical scenario that occurs in the last year of each bullish bitcoin cycle is taking placeas in 2021 and 2017. This is characterized by the entry of new demand in cryptocurrencies driven by euphoria, which leads them to register higher returns than BTC.
But, no matter how many increases may be taken by those who benefit, Rodríguez highlights: “Be careful because many people are going to get hurt here.” “Many retailers are going to be that new capital so that the whales that have already entered come out,” he says. Seasons of euphoria for cryptocurrencies always culminate in abrupt falls, from which some never recover.
Something to also consider is that 80% of TRUMP tokens are in a single address and will be downloaded gradually over a period of 3 months to 3 years. “This game is going to turn out pretty badly in the long term,” warns Rodríguez, in the face of the potential supply pressure that there will be in the market.
Trump promotes that the bullish cycle of cryptocurrencies continues, says Melker
In correlation, Scott Melker, an analyst known as “The Wolf of All Streets,” highlights that TRUMP’s launch sends a clear message: “Do what you want.” According to Melker, this move reduces the perceived risks of regulatory sanctions and could drive innovation in the cryptocurrency industry.
Melker also points out that this initiative blows a puff of hot air into the system, indicating that this cycle is far from over. “Trump’s movements are actively planting the seeds for cyclical behavior, multiplied by three,” he believes.
However, “giving the green light to each company, institution and individual to launch their own currency is a plan for anything but sustainable growth,” the specialist considers. In other words, distinguish that serious corrections are inevitable.
The analyst also expresses concern about the Trump team’s control of the supply: “They can keep it, burn it, sell it slowly on the market or get rid of it at their discretion,” he mentions.
Furthermore, he considers that the most controversial thing about this initiative is the ethical and moral debate that it has sparked, as other specialists have also criticized. “I think this is a massive scam and money grab,” Meljer exclaims. According to the emoluments clauses of the United States Constitution, a president cannot use the office to enrich himselfhe adds.
Taking all this into consideration, he recommends that cryptocurrency operators be prepared for the risks involved in the furor that can be unleashed in the market around memecoins.
