Trump's Memecoin Soars After Social Media Endorsement
By: Eva Baxter
The cryptocurrency market experienced a sudden surge with the memecoin launched by U.S. President Donald Trump, known as TRUMP. This occurred following a public endorsement by Trump himself, as he praised the token on his Truth Social platform. The President referred to the memecoin as “SO COOL” and the “Greatest of them all”, marking a notable event as it was his first public statement about the token since January.
Immediately after this promotion, there was a remarkable price jump from $10.93 to $12.25, translating to an increase of around 12%, before the price stabilized near $11.91. The momentum temporarily placed TRUMP on the list of top gainers, as tracked by reputable cryptocurrency platforms. The surge in the spot markets was accompanied by increased activity in derivatives markets as reported by The Block. The derivatives trading volume for TRUMP saw a remarkable escalation of 373.30%, reaching $2.61 billion, and the open interest in its futures rose by 25.25% to $370.68 million.
The speculation surrounding the token led to mixed fortunes for traders. On-chain analytics showed that a whale, previously successful with early investments in TRUMP, suffered a loss of $207,000 in one hour after buying into the rally with $5 million USDC. This trader's prior investment had netted him a significant profit, yet his decision to participate in the latest rally resulted in a notable loss, underscoring the volatile and unpredictable nature of memecoins.
Nevertheless, the broader response from the crypto community highlights a waning interest in memecoins, which often lack transparency and are perceived as more speculative than substantive. Despite the temporary market excitement following Trump's endorsement, the memecoin sector continues to see dwindling enthusiasm as investors look towards more established and stable projects within the crypto space. This trend is evident as attention shifts towards foundational cryptocurrencies like Bitcoin, pushing the envelope for a more mature and sustainable crypto ecosystem.
