$TRUMP coin: Meme coins launched by U.S. President Donald Trump and his wife, Melania Trump, are making waves in the investment world. $TRUMP, introduced by Trump, is currently the 18th most-valuable cryptocurrency globally, while $MELANIA, launched by his wife, ranks as the 94th most valuable, according to cryptocurrency observers.
Within hours of its launch, $TRUMP skyrocketed, hitting a market capitalisation of $11 billion.
Edul Patel, the CEO and co-founder of Mudrex, observed that Trump's own crypto reached a market capitalisation of over $11 billion and secured the 18th position in global rankings. Additionally, the launch of the Melania meme coin is creating a buzz in the ecosystem.
Meme coin $TRUMP has been launched ahead of Donald Trump's inauguration ceremony on January 20 to mark the celebrations of his comeback as the US President.
"Both coins, launched on the Solana blockchain, were strategically introduced just before Trump takes oath as the 47th President of the United States,” said Patel.
Meme coins are currently in vogue. They are a type of cryptocurrency or digital asset inspired by internet memes and trends. Notably, they lack intrinsic value and are heavily influenced by social media and public sentiment, making them highly volatile.
Like several other cryptocurrencies, meme coins are created using blockchain technology, which stores and shares data across a network.
Investors can buy them through brokers or exchanges. To do so, one has to create a cryptocurrency wallet and buy base cryptocurrencies like Ethereum (ETH) or Binance Coin (BNB) on popular exchanges to trade $TRUMP. Then, one needs to use a decentralised exchange to trade one's base cryptocurrency for Trump memes.
"These launches seem aimed at generating popularity, creating a trend, and celebrating Trump's return to the White House. While these developments are likely to spark global conversations about the crypto market, it’s important to note that these assets are primarily driven by hype rather than intrinsic value," said Patel.
Patel emphasised investors and traders should approach these coins cautiously, as their value is highly volatile.
"While they might present opportunities for short-term gains, their speculative nature makes them risky investments. It’s crucial to conduct thorough research and remain mindful of the risks when engaging with such assets," said Patel.
Balaji Srihari, Vice President at CoinSwitch, pointed out that these tokens are experiencing a lot of volatility at present.
"We don't know what the roadmap is like or if there are plans to make it more than a meme coin. What's important is understanding your strategy. If you're a trader, momentum in either direction might be good for you, but not so much for everyone. Staying informed about market trends and updates is critical for making confident and well-informed decisions. Always prioritise due diligence and a risk-aware approach to safeguard your financial interests," said Srihari.
Experts emphasise that meme coins are sentiment-driven and highly speculative. As they lack underlying assets, trading in them is deemed extremely risky. Although cryptocurrency is not banned in India, it operates in a largely unregulated environment.
Srihari underscored that for Indian investors interested in Virtual Digital Assets (VDAs), the first step is to choose a secure and trusted exchange registered with the Financial Intelligence Unit (FIU).
"Completing the mandatory KYC process enables you to invest in any token listed on the platform. You also have the flexibility to sell your holdings anytime based on your strategy. However, thorough research and a risk-aware approach are vital to safeguarding your financial interests, especially in speculative markets like meme tokens," Srihari said.
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