Trump entry into the meme coin market signals continued growth in crypto with TRUMP and MELANIA coins leading the trend.
Ki Young Ju, CEO of CryptoQuant, believes that retail investors have always followed trends in financial markets, making meme investing a long-standing behavior. Even investing in the S&P 500 can be considered a form of meme investing, he observes. Trends and ideas seem to have spread even faster than it has ever done with the rise of internet and social media.
Retail investors are empowered through platforms like Robinhood and the crypto exchanges to take more active roles in the market. However, most of these investors do not have the required expertise and end up trusting influencers or popular trends for their investments. The result is volatility, and institutional investors can make money from this volatility.
Trump Administration’s Support of Meme Coins Signals Continued Growth in Crypto
In such an environment, it was not surprising that Melania Trump launched her own meme coin, $MELANIA. The trade comes a day after her husband releases a $TRUMP coin. On Truth Social, the president-elect encouraged followers to celebrate “everything we stand for: WINNING.” He is encouraging them to join his ‘very special Trump Community’ by buying $TRUMP. This is another example of the meme coins trend. The coins are both a tribute to the correlation between celebrity culture and cryptocurrency.
It seems that meme-driven investments fit the Trump administration. They believe, “If it is inevitable, use them.” The community is the only thing that matters to the $TRUMP coin. When meme coins get attention, they grow fast. As long as the fan base is strong, the coin retains its value. If the creator walks away, the value can go down.
As long as meme coins are still interesting, they will continue to evolve in the future. He believes this decentralized system will lead more to appear as meme coins. Their value is generated through their communities. While some coins can be useful, others can be abused. Support for free markets by the Trump administration means meme coins are going to grow. At least until 2028, they will continue influencing the crypto world.
Source: https://www.livebitcoinnews.com/trump-entry-into-meme-coin-market-signals-new-era-for-crypto/