Tuesday, January, 21, 2025

TRUMP Token Sees Modest Gain After Trump’s Social Media Endorsement Amid Heightened Political Scrutiny

TRUMP token rises 12% after Trump's post, but looming token unlock and regulation cast doubts on its future.
Trump
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Fridah Kangai

Fridah Kangai is a dedicated crypto journalist with a sharp eye for market trends, blockchain innovation, and digital asset movements. She specializes in breaking down complex topics into clear, engaging stories for both seasoned investors and curious newcomers. With a passion for decentralization and a pulse on the ever-evolving crypto space, Fridah delivers timely, accurate, and insightful coverage. Her work bridges the gap between technology and everyday understanding in the world of cryptocurrency.
  • TRUMP coin gained only 12% after Trump’s Truth Social post, raising doubts about investor interest.
  • Lawmakers push the MEME Act to ban federal officials from profiting off meme coins like TRUMP.
  • Analysts warn of a $1.5B TRUMP token unlock in 2025 that could trigger a market-wide sell-off.

TRUMP meme coin prices rose momentarily following Donald Trump’s endorsement through Truth Social. When the former president labeled it “the greatest of them all,” the coin jumped from $10.93 to $12.25 and returned to $11.91 before settling.

Despite being the best-performing meme coin of the day, the 12 percent rise remains relatively weak compared to past crypto surges linked to Trump’s previous comments. Market analysts believe the tepid investor response highlights impaired interest while regulators maintain increased market oversight.

TRUMP token received its market launch in January yet showed significant price swings throughout its short lifespan. At its most valuable moment, the coin attained $1 billion in market capitalization, yet it quickly declined 75 percent within successive weeks.

The TRUMP token struggles with political opposition as legislators work on a new bill that blocks public officials from promoting meme coins. The MEME Act represents a proposed federal law introduced by Representative Sam Liccardo that prevents federal officials and their family members from benefitting monetarily through digital assets.

The crypto space sector faces growing concerns about transparency and accountability, which led to this announcement. Digital token endorsements from political figures can lead retail investors astray through deception, which could alter market conditions.

Upcoming Token Unlock Fuels Dump Speculation

The crypto analyst Orlando predicts that TRUMP tokens worth over $1.5 billion will become available for redistribution in April 2025. The substantial token dump has the potential to strain market conditions through early holder sell-offs.

Orlando believes that Trump released his social media post strategically to boost demand in the market before the upcoming token unlock. The expert analyst Brett Johnson branded the project a scam, which he claims has resulted in losses exceeding $12 billion for investors since the token launched.

The official stance from the SEC declares that meme coins such as TRUMP are exempt from security requirements. By defining these assets, the commission lost its ability to regulate them, creating doubts about investor protection standards and market transparency.

Despite Trump’s involvement in the crypto market, Ash Crypto found that TRUMP experienced minimal price changes due to his influence. The cryptocurrency expert explained in 2021 that a single tweet from Twitter could trigger massive price spikes, reaching hundreds of percent for meme coins.

According to Ash, the market’s unimpressive response to Trump tokens demonstrates weak spending capacity and increased investor wariness. The altcoin market demands a substantial driving force to achieve increased momentum in its recovery.

The meme coin TRUMP maintains its prominent status through political associations, although its future remains uncertain. Fragility marks the coin’s future because forthcoming token releases, mounting political attention, and investor doubts create operational challenges.

Also Read: Ripple Case Nears Conclusion as SEC Sources Indicate Key Developments

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