The crypto market is ushering in a significant transformation

On the eve of the inauguration ceremony, the president-elect Trump caused a huge stir in the crypto market. On January 18, Trump announced the launch of his personal Meme coin TRUMP, pioneering the issuance of personal digital currency by national leaders and setting a new milestone for the encryption world.

After the announcement, TRUMP coin quickly skyrocketed. The intraday increase once reached 1250%, with the price soaring to 80 USD, and the market capitalization exceeded 20 billion USD on the first day, setting one of the fastest records for market capitalization growth in the crypto market. The surge of TRUMP brought about a significant wealth effect, with many participants making substantial profits. However, the president's personal issuance of digital currency also sparked intense discussions globally.

It is worth noting that First Lady Melania Trump also launched a meme token of the same name this morning. The political couple seems to be extending their influence into the crypto market, sparking speculation about their motives.

On the morning of January 18, Trump announced the upcoming launch of the TRUMP token on his social media platform. Although the market was initially skeptical about this news, believing it could be a hacked account, the cryptocurrency still experienced rapid growth. Within half an hour, its market capitalization soared to $2 billion, with the top ten holding addresses controlling nearly 90% of the token supply.

Trump subsequently confirmed the news on another social platform, causing a stir in the market. The price of TRUMP coin skyrocketed from $20 to $74, an increase of over 400 times, with its market cap briefly exceeding $15 billion. Currently, the popularity of TRUMP coin has cooled down, with a quote of $48.65.

According to the official introduction, TRUMP is issued on the Solana blockchain and aims to commemorate Trump's iconic image. To attract more investors, TRUMP offers various payment methods, including traditional payments and encryption.

From the perspective of token allocation, Trump's two companies will hold 80% of the TRUMP tokens, with a lock-up period of 3-12 months, unlocking within the next 24 months. The official statement emphasizes that the project does not involve politics and is not related to any political activities.

For the crypto market, this is a significant event as it marks the first time a president has issued a coin in their personal capacity after the Trump family’s indirect involvement in DeFi. This move could trigger a chain reaction, affecting other countries and regions, and opens new channels for political donations and personal profit. At the same time, it highlights Trump’s recognition of encryption, indicating that the crypto market may welcome new development opportunities in the next four years.

The surge in TRUMP tokens has brought about a significant wealth effect. Several large holders have made profits exceeding ten million dollars, and many well-known individuals have achieved single-token profits of over one million dollars. Some investors entered the market just 4 hours before the token release, with the highest floating profit exceeding one hundred million dollars.

This event not only drove the rise of TRUMP coin but also boosted other major encryption currencies. Bitcoin rose from $97,000 to $105,000, while Solana surged by 23.02%, breaking through $270 at its peak.

Trump himself has also benefited greatly from this. Based on the current price of 48 dollars, the value of the encryption he holds has reached 38.4 billion dollars, far exceeding the previous valuation of 5.6 billion dollars.

However, the president's public use of personal influence to issue tokens for personal gain has raised widespread concerns. Critics argue that this practice blurs the lines between administrative boundaries and commercial interests, which contradicts the traditional practice of presidents divesting personal assets before taking office to avoid conflicts of interest.

The crypto market has also expressed concerns about this move. Industry insiders bluntly stated that it is a predatory behavior that could harm many people. Even Trump supporters have said that this behavior is detrimental to the industry's development.

In fact, using personal influence for business expansion has always been a hallmark of Trump. From universities and hotels named after himself, to issuing NFTs, and now launching MEME tokens, it reflects his tendency to convert political influence into commercial gains.

It is worth mentioning that other encryption projects of the Trump family are also taking advantage of the situation. The World Liberty Financial project announced that 2 billion WLFI tokens have been sold out, worth $300 million, and plans to reopen 5% of the token sales.

In the early hours of today, Melania also announced the launch of the MELANIA token, further expanding the Trump family's influence in the encryption field. The price of the MELANIA token rose from $0.4 to a peak of $18, with a maximum market value of $18.2 billion, and currently stabilizing around $7.2 billion.

However, the market is also cautious about this approach of full family participation. The price of TRUMP coin quickly fell back to $45, with a market value evaporating by $7.5 billion in a short time. This volatility also affected other altcoins, triggering a widespread decline.

Despite the ethical controversies raised by the Trump family's series of actions, the existing laws suggest that the U.S. Constitution does not explicitly restrict the president from using personal influence for gain, especially in the crypto market where regulation is still unclear.

From the perspective of the crypto market, although it is not uncommon for celebrities to issue MEME tokens, most of the outcomes are not ideal. Trump's actions have brought political MEMEs to the forefront, which may inspire more politicians to follow suit. As Trump's inauguration speech approaches, the related hype and fervor may further intensify.

However, whether this will become a new round of wealth opportunities or another speculative bubble remains to be seen. Investors need to stay vigilant and act cautiously when participating.