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The fast-paced crypto-related moves by the 47th US President over the past few days, which began with the surprise launch of the $TRUMP meme coin late on Friday and culminated in a Trump-linked entity participating in the Ethereum staking process on Monday, felt more like a whirlwind, with the market at large often guessing as to what would happen next. Now, however, serious financial analysts are finally coming out with their insights on Trump's game play, asserting that there is a method to this madness.
As a refresher, the $TRUMP meme coin's only claim to utility lies in bringing together like-minded traders and investors to foster a community premised on the incoming US president's star power.
On a more granular level, 200 million $TRUMP meme coins are available for trading at the moment. Over the next three years, however, this supply will grow to 1 billion coins. Do note that this unreleased supply is currently being held by an affiliate of the Trump Organization, CIC Digital LLC, in conjunction with a Delaware-based, Trump-linked company, Fight Fight Fight LLC.
At its peak just before the launch of the $MELANIA meme coin on Sunday, the $TRUMP coin was trading with a market cap of around $13 billion. What's more, after factoring in the coin's unreleased supply, its fully-diluted value stood at a whopping ~$70 billion. However, the launch of the $MELANIA coin did rattle the market amid rampant chatter around dilution and what other coins might yet be launched by the other members of the Trump family.
Bernstein on $TRUMP Coin: "Whichever way you see it, we think a new chaotic crypto era is here. The President of America has his own coin. Our view would be to view the event as a signal that a new crypto regulatory era is here to stay and invest in the more valuable parts of the…
— Wall St Engine (@wallstengine) January 21, 2025
This brings us to the crux of the matter. Bernstein is now out with its take on these fast-paced developments, noting at the outset that a "chaotic crypto era" is now here to stay:
"Whichever way you see it, we think a new chaotic crypto era is here. The President of America has his own coin."
The research and brokerage firm goes on to note:
"Our view would be to view the event as a signal that a new crypto regulatory era is here to stay and invest in the more valuable parts of the ecosystem. But some may still cringe - it is what it is."
TRUMP'S MEME COIN SEEN AS POSITIVE SIGNAL FOR CRYPTOS
Donald Trump's decision to launch his own cryptocurrency meme coin is being taken as a positive signal for the digital asset market, Hargreaves Lansdown analyst Susannah Streeter says in a note. Trump and his wife have both…
— *Walter Bloomberg (@DeItaone) January 20, 2025
This aligns with a separate note penned by Hargreaves Lansdown's Susannah Streeter, where the analyst viewed the launch of the $TRUMP meme coin as a "positive signal for the digital asset market," indicating that Trump's pledge to make the US the crypto capital of the world will be honored, and potentially ushering in cryptocurrencies "into the financial mainstream with clearer rules about how individuals and firms can trade such assets."
Streeter does caution:
"Nevertheless, investors should be mindful of getting carried away in a wave of speculation, with money they can't afford to lose."
At the time of writing, the $TRUMP meme coin boasts a market capitalization of $7.95 billion and a fully-diluted value of $39.79 billion.
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