“It is noted that representatives of the crypto industry fear the consequences of some of Trump’s decisions.”, — write: www.unian.ua
It is noted that representatives of the crypto industry fear the consequences of some of Trump’s decisions.
Crypto industry experts are no longer happy about Trump’s return to the White House / photo ua.depositphotos.comThe new US President Donald Trump, who inspired the crypto industry with his campaign promises, launched his token before his inauguration. Representatives of the crypto world are concerned about the consequences.The Atlantic writes that the price of Trump’s token rose from $6 to more than $70 in about a day. With two Trump-affiliated companies owning 80% of the coin’s total supply, Trump essentially withdrew over $10 billion in one weekend.
Axios estimates that $TRUMP represented about 89% of Trump’s net worth during that period, making him one of the richest people in the world. Later, Melania Trump announced the release of her own coin – $MELANIA.
Both $TRUMP and $MELANIA are so-called memecoins. They have neither the basics of business nor practical application. Memcoins usually get hyped up in a matter of minutes, skyrocket to wildly inflated social media ratings, and immediately dump those who bought into them a few moments too late. It is an incredibly effective, incredibly predictable and incredibly predatory scheme.
The arc of the memcoin market cycle almost always tends to zero. Insiders and early adopters make quick profits at the expense of latecomers. And while it’s possible that Trump’s global influence gives $TRUMP more stability, it’s likely to be even more volatile than cryptocurrencies like Bitcoin. The value of $TRUMP has already fallen by more than half and is now less than $8 billion.
This raises the question of how the new tens of billions of dollars promised by Trump on paper will flow into the real world, since most of the total amount of tokens has not yet been issued, and any attempt to start cashing the money will undoubtedly lead to a sharp increase in prices . However, even after Trump promised a new golden age for cryptocurrencies, his new hypothetical billions all but solidify his interest in taking a more hands-off approach to the industry.
Another potential problem is that because of the lax regulation of memcoins, anyone can buy them, whether it’s a 12-year-old with a parent’s credit card or North Korean hackers looking to gain leverage over the global economy. There is also the possibility that Trump’s memecoin gambit could inspire other world political and cultural leaders to launch similar coins.
While much of the crypto world has been eagerly awaiting Trump’s return, a sense of unease has settled among a number of the industry’s biggest defenders, who admit that memcoins don’t exactly reflect well on cryptocurrency.
“Memcoins have zero value,” reminded investor Balaji Srinivasan. “There is no wealth creation… And after the initial spike, the price eventually collapses and the last buyers lose everything.”
Nick Carter, a well-known crypto investor and Trump supporter, believes the concern reflects panic, a slowly growing sense that Trump cannot be controlled the way the industry would like.
Trump and the cryptocurrency world – the latest newsNewly elected US President Donald Trump announced the launch of the $TRUMP memcoin. 200 million coins were released on the first day.
In a few days, the future first lady of the USA, Melania Trump, also announced the launch of her own cryptocurrency – memcoin $MELANIA.
On January 20, Bitcoin hit an all-time high of $109,241 amid preparations for Trump’s inauguration, but the cryptocurrency market has seen changes since the ceremony. In particular, Bitcoin, as well as memecoins of the Republican and his wife, fell in price.
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