They soared in a day, but after that dropped by 50%
What really happened and what did it affect?
Explore the detailed story on how it was & what's next🧵👇
On January 18, Donald Trump posted on X about the launch of his token $TRUMP:
“It's time to celebrate everything we stand for: WINNING! Join my special Trump community. GET YOUR $TRUMP RIGHT NOW.”
Trump's CIC Digital LLC will own 80% of the tokens, according to the coin meme's site.
The launch of the coins caused surprise and concern even among those in the cryptocurrency industry.
However in just one day and 10 hours, his coin reached $74B Market cap.
Turning a huge number of people into millionaires in 24 hours.
The token quickly broke into the top 20 of all cryptocurrencies.
Such was the extent of the digital stampede, blockchain analysts said, it sucked liquidity from the rest of the market.
This caused other coins to fall in value, as traders sold their existing holdings to buy into Trump’s.
But just 9 hours later, the coins dropped more than 52% and the market cap became $35B.
This drop caused some people to lose their money and start selling their coins.
Even though the market cap eventually rose to $63B, this led to outrage from traders who expected the market cap to rise above $70.
Let's take a closer look at why this could happen.
The incoming US first lady, Melania Trump, has followed her husband’s lead by launching a multibillion-dollar cryptocurrency meme coin named $MELANIA.
This comes amid a rally in digital currencies as he prepares to return to the White House.
Shortly after the launch of the $MELANIA token, this coin reached $13B Market cap in almost 4 hours.
This also allowed many traders to make money.
However, it was Melania Trump's launch that seems to have had a similar unintended impact on the market.
Some traders sold $TRUMP tokens to buy $MELANIA tokens.
Although the meme led to a slight drawdown in other coins, it boosted bitcoin's momentum.
Retail traders are optimistic that Trump has reaffirmed his commitment to the crypto industry.
In fact, yesterday $BTC hitted ATH at $108,786, up more than 5%.
$DOGE - which Trump-supporting billionaire Ilon Musk calls “the people's cryptocurrency” - rose nearly 5%, while $ETH climbed 3.5% to $3384.
Also Trump has promised to be a crypto president.
He was expected to issue executive orders aimed at reducing crypto regulatory roadblocks and promoting widespread adoption of digital assets.
At the time this thread was written, Donald Trump had already become president.
Relaxed crypto regulations spurred bitcoin's rise after Trump's November election win.
It should also be mentioned that Trump is planning to create the first American $BTC crypto-reserve.
However it was leaked that he also wants to add some alts.
In confirmation of this, Donald Trump recently met with the founders of several crypto projects.
And they discussed the idea of creating a cryptocurrency reserve.
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