Trump's tweets set off the crypto market, with personal meme coins soaring 10% in a single day
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US President Trump suddenly tweeted on his social media platform, declaring "I love $TRUMP, so cool! The best of them!" This statement directly stimulated the price of TRUMP Coin to soar by 10% in a short period of time, and the daily trading volume exceeded US$230 million. As the world's first personal meme coin endorsed by a head of state, the price fluctuations of this asset have always been closely intertwined with Trump's political trends since its launch on January 18, 2025.
From controversy to carnival: the roller coaster ride of Trump Coin
Trump Coin is issued based on the Solana blockchain, with an initial supply of 200 million, of which 80% are held by Trump's entity "Fight Fight Fight". On the first day of its launch, the price of Huobi Exchange once soared 1250% to 21USDT, and its market value exceeded US$4 billion, ranking fourth in the world's meme coins. However, this enthusiasm did not last. As the market cooled down, its price plummeted by 80% in three weeks, resulting in a loss of about US$2 billion for more than 810,000 crypto wallets.
The price rebound stems from the executive order recently signed by Trump. On March 6, the Trump administration announced the establishment of a "strategic bitcoin reserve", listing about 200,000 bitcoins held by the federal government as "digital gold", and setting up a digital asset reserve to collect confiscated assets. This move was interpreted by the market as a fundamental change in the United States' attitude towards cryptocurrencies - from cautious regulation during the Obama era to strict restrictions by the Biden administration, and then to a full embrace in the Trump era.
Double variation of cryptocurrency and political game
Trump's attitude towards cryptocurrency has changed dramatically. When he first entered the White House in 2016, he publicly criticized Bitcoin as "as empty as air" and warned that it could facilitate criminal activities. But the successful experience of issuing NFTs in 2022 changed all that: 45,000 digital collections based on Trump sold out in 24 hours, generating $4 million in revenue. More importantly, the cryptocurrency industry provided it with nearly $250 million in political donations in the 2024 election, of which the "Trump 47" political action committee raised $7.5 million in crypto donations in four months.
This exchange of interests gave birth to Trump's new economic strategy: attract global crypto capital by relaxing regulations, and at the same time reconstruct the dollar hegemony with the help of Bitcoin's "decentralized" characteristics. The "World Free Finance" platform he established has purchased a total of 45 million US dollars in crypto assets, with Ethereum accounting for 66%. However, critics point out that the essence of this policy is "using national credit to endorse private capital." Former US Treasury Secretary Yellen warned that the high volatility of cryptocurrencies may trigger systemic financial risks.
For ordinary investors, the surge in Trumpcoin may just be another local outbreak of the cryptocurrency bubble. In the context of an imperfect regulatory framework and high market risks, whether the "American Dream" of cryptocurrencies can come true still needs time to test.
