The unexpected promotion of a memecoin on Donald Trump’s social media accounts has sent shockwaves through the crypto industry, sparking doubts and skepticism among experts. The TRUMP token, launched on the Solana blockchain, quickly skyrocketed to a market capitalization of $8.3 billion within just a few hours of the announcement.
On Saturday, January 18, the official accounts of Donald Trump on X and Truth Social announced the launch of a “new official meme” on the Solana blockchain, urging the community to acquire the TRUMP token to celebrate victory. However, the sudden surge in the token’s value raised suspicions within the crypto industry, with experts questioning the authenticity of the posts and suggesting a possible compromise of Trump’s social media accounts.
Max Schwartman, CEO of BecauseBitcoin, warned of the potential consequences if the promotion was indeed a hack, stating that it could dampen Trump’s optimism towards crypto as he takes office. JRNY Crypto, a respected industry analyst, also expressed skepticism, noting the absence of official validation from Trump’s team beyond the social media posts.
The announcement had an immediate impact on the crypto market, particularly on the Solana ecosystem, where the price of SOL surged by 4.12% to reach $228. Investors flocked to the controversial project, causing panic and selling among some who feared missing out on Trump’s memecoin. Analysts warned of potential risks ahead, with Edward Morra cautioning that the situation could lead to a broad market liquidation as Trump’s inauguration approached.
Even those who believed in the authenticity of the project maintained a cautious stance, with some prominent figures in the industry, like Daniel Got Hits, refusing to engage with the TRUMP token. The turmoil comes just days before Trump’s presidential inauguration, amidst speculation about a possible decree prioritizing crypto at a national level.
In conclusion, the promotion of the TRUMP token has divided the crypto community, with experts and investors alike expressing doubts and concerns about the sudden announcement and its implications for the market. As the situation unfolds, all eyes will be on how Trump’s team responds to the controversy and the impact it will have on the broader crypto industry.