The CEO of digital asset analytics company CryptoQuant outlines what gives President Donald Trump’s newly launched memecoin value.
The Official Trump (TRUMP) memecoin launched on Friday and quickly rose in price to become a top-30 crypto asset by market cap.
The asset is trading at $40.47 at the time of writing and is down almost 40% in the last 24 hours, but is up more than 518% since Friday. It already has a market capitalization of more than $8.1 billion.
CEO of CryptoQuant Ki Young Ju say Retailers think the financial markets are all about following trends and ‘chasing memes’.
“What gives Trump’s meme coin its value? Unlike traditional securities, which pool investments for productive activities, celebrity meme coins do not directly create value. Instead, Trump will likely use his coin holders as a powerful community base for collective action. If you’re considering investing in Trump Coin, the most important question is how much influence his community will gain during his presidency. The value of the currency depends entirely on what Trump does. With his fervent fan base, Trump’s meme coin is unlikely to ever go to zero — unless he deliberately pulls the rug.”
Young Ju says the value of a memecoin depends on whether the associated community acts in a way that benefits society.
“A community with good will could turn a meme coin into a valuable asset. But on the other hand, it would be terrifying if a cult or terrorist group were to use a meme coin to build a huge following.”
The director of CryptoQuant also predicts that more memecoins will be launched under the Trump administration.
“The Trump administration has embraced free markets over regulated markets, and over the next four years we will likely see all kinds of experimentation with meme-driven communities in the crypto space. This wave cannot be stopped – at least until 2028.”
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Generated image: Midjourney