Did Trump Cancel The US Bitcoin Reserves?

Trump’s memecoin $TRUMP changed the crypto market overnight. BIG time. On Saturday, sentiment ranged from bewilderment to ‘is his account hacked’ to amazement. On Sunday, the first question marks started to pop up on X or CT (crypto Twitter). Today, the general sentiment is that launching this coin was a bad idea. It’s not good for the crypto sector. 

However, now we not only have a Trump coin, but also a $MELANIA memecoin. Interestingly, this took around 50% of the Trump coin’s market cap away. In other words; Melania just wiped out half of Trump’s net worth without even getting divorced. So, let’s take a closer look at what happened with the TRUMP coin.

The Timeline of the Trump Coin

It was during the Crypto Ball, Friday evening, 17th January, US time. That’s when Trump launched his memecoin. This led to this interesting comment on Saturday, the 19th. 

You degens can play around with your little crypto projects, but I am the one in charge. Don’t for a minute think that I owe you guys anything. You should be thanking me. Now here’s my coin. You can get on board, or I will deal with you later.

Within only three hours, the coin hit an $11 billion market cap. Davie Satoshi mentioned on X that the chart has a ribbon effect. He argues that this is not natural and that it is pure manipulation by bots on a mass scale. He also mentions that nobody, but insiders, had a chance to get in early. Unless you managed to get in during the first hour. However, that was also the time when it was unclear if Trump’s account was hacked. He states that only getting in during the first hour made life-changing money.

However, the madness continues. From $10, the coin went all the way up to a current ATH of $73.43. That was around 24 hours ago. The Trump coin even managed to flip $DOGE for a short moment. Currently, it’s swapping places between 2nd and 3rd place among all memecoins with $SHIB.

A Wild Ride

This has been one of, if not THE wildest rides I have ever seen in crypto. It’s insane to see a coin come out of absolutely nowhere and take up to 12th spot measured by market cap in 24 hours. 

In no time, there were also Coinbase and Binance listings. Today, Robinhood joined the party. However, the general sentiment has shifted now. This morning, the majority of posters on CT are not so happy anymore with the $TRUMP memecoin. So, let’s take a look at why.

How Sentiment Shifted

The $TRUMP token launch was initially met with interest and enthusiasm. Especially when it was clear that his social media accounts weren’t hacked. Many high-profile X account owners showed excitement about this. Like Anthony Pompliano with 1.6 million followers.

There were also a few skeptic accounts, like Edward Morra, who has 61.8k followers. He thinks this whole $TRUMP memecoin will end badly.

However, bit by bit, a more skeptical view becomes common. As I already mentioned, this morning, CT was not too happy or positive about $TRUMP anymore. 

Altcoins Bleed

Yesterday, it also became clear that the rise of the $TRUMP token was at the cost of alts. Everybody and his dog took liquidity out of their positions and shifted it to $TRUMP.  As a result, many altcoin portfolios were down around 10% early this morning.

This looked like a temporary halt to altcoin season. However, Bitcoin got a big injection this morning as well. It went from $102k to a new ATH of $108,744. This morning’s portfolio 10% loss is already reduced. 

Nonetheless, criticism of the token launch is harsh. Although it’s also not well-received by many hardcore Trump followers. That is an unfortunate side effect of the polarization that is taking place.

Zack Guzman also alleges that Trump and his team launched over last weekend for a good reason. That’s because now he is still a private US citizen. Today, he becomes the 47th President of the USA. This opens him up to Constitutional violations and impeachment. 

Staying Within the Law

According to the Constitution, no President is allowed to abuse his office to enrich himself. Specifically, the Emoluments Clause states this. It prevents the president from receiving profits or gains from foreign governments. That’s what makes these coins interesting.

It all adds to Trump and the $TRUMP token taking over first spot in social mentions across all social media. Let’s also not forget that today is Trump’s inauguration. That may give a new impulse to both his token, and hopefully to the crypto market in general. 

The expectation is that he will sign a slew of Executive Orders today, once he is back in the White House. Some say it is up to 200 Executive Orders. This should also include crypto-related affairs. 

Are There Any Winners?

The Trump coin and $MELANIA memecoin both launched on Solana. The chain managed to deal with the added pressure and number of transactions. However, it slowed down at times, but it never halted. 

So, that’s a net positive for Solana. $SOL also reached a new ATH on Sunday of $293. Kudos to Solana, and it puts Solana in a prime position to do well during this bull run.

Trump and his World Liberty Financial DeFi protocol bought more Ethereum. Its current holdings are over $106 million. Eric Trump even hinted at more for today. The Trump family also purchased three domain names:

• trumpcoin.eth, 
• erictrump.eth 
• barrontrump.eth
  

Trump managed to onboard new users to crypto. However, that didn’t happen until $TRUMP got listed on CEXes. It’s unlikely that a newbie knows how to buy $SOL and send it to a noncustodial wallet. Let alone that he or she knows how to buy on a DEX.

So, what do you think of this $TRUMP memecoin. Is it good for crypto or not?

Disclaimer

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