Was $TRUMP A Boost Or A Blow To Crypto’s Reputation? #CriptoNews

The $TRUMP token has taken the crypto world by storm. Within hours of its launch, it skyrocketed to nearly $5.5 billion in market cap, outpacing even Dogecoin ($DOGE)—the original and largest meme coin in history. Its rapid rise has fuelled intense debate. The token shattered records, drawing hefty capital from other altcoins and even Bitcoin wasn’t spared.

The crypto community experienced something akin to an existential crisis. After all, we’re talking about one of the most defining political figures of the past decade who launched his own memecoin, shaking up the crypto asset market. And yet, blockchain experts don’t hold back in their critiques. Can a memecoin, which is the prime example of a digital asset lacking any intrinsic value, be anything less of a poor choice in times when the crypto space is striving to strengthen its reputation? And was the opposite even the intended result?

The issue has become a black hole for debate. A US president-elect launching a memecoin right before his inauguration could be seen as a farse indeed, especially reflecting back on 2017, when no one could even conceive such an unorthodox idea… But many things have changed in these few intense years. Could this be the start of a new fad among public figures and celebrities to to use cryptocurrency for influence? We can see the trend is already spreading. $MELANIA tokens launched shortly after her husband’s, and the natural train of thought leads many to believe that the bandwagon will get crowded soon. It wouldn’t be the first time something of this magnitude has happened. The Hawk Tuah memecoin has shown how easy it is for certain personas to pull the rug from under their holders. And yet, there is a significant difference in authority when the person launching memecoins is not just any figure, but the leader is one of the world’s largest economies—President Donald J. Trump.

However, the matter of President Trump launching his token isn’t as simple as being bullish or bearish. On one hand, it further highlights his pro-crypto stance proven by recent order to create cryptocurrency working groups, even though the Bitcoin Act itself is yet to be signed. The launch could be interpreted as a green light for capital inflows and new crypto projects, particularity within the U.S. market and the broader Western crypto sphere, potentially invigorating the industry.

On the other hand, the downside of this event was that $TRUMP drained liquidity from more reputable tokens, and critics warn that this could destabilize the market—at least in the short term, as capital flows adjust. Launched on Solana, $TRUMP’s surge contributed to the chain’s growing dominance in the memecoin space. While Solana is outperforming its TVL records with $12.1bn, some argue that this pattern, following the footsteps of projects like Hawk Tuah memecoin, serves as a cautionary tale of speculative excess. Adding to this, the launch coincided with an unusually quiet Friday evening. Whether this timing was a deliberate strategy to minimise scrutiny or a coincidence, it has raised eyebrows above the many watchful eyes in a market already battling the poor reputation of a field abounding in scams and manipulations.

Was This Just a Way to Pump Their Bags?

The controversy has intensified with discussions of a potential market manipulation and insider trading. Critics argue that the $TRUMP pump is the very definition of insider trading. Further fuelling the controversy, other social media blockchain ‘detectives’ tracked wallets that made ‘generational wealth in 24 hours’; the claims so far remain speculative.

Despite the sensational headlines, a Forbes report by Derek Saul offers a counterpoint to the claims that Trump himself reaped billions from the token’s success. The article meticulously breaks down why such calculations are misguided, including fully diluted valuation fallacy, locked tokens, and ownership uncertainty. Additionally, the exact split of token ownership between Trump-affiliated entities is unclear, making it impossible to calculate Trump’s personal stake accurately.

$TRUMP Fueling Contradicting Views

Unsurprisingly, this polarizing token hardly allows for a golden mean to be found in the buzzing crypto community; some stubbornly insist the token epitomizes everything that is wrong with crypto today—rampant speculation, insider profiteering, and a lack of real-world utility. Crypto Twitter feeds us with statements like “First president to rug pull in history”.

Others see it as a bold move that could bring crypto into the mainstream, describing $TRUMP as the best thing to happen to crypto.

Regardless of perspective, the token has undeniably brought attention to the industry. But does the saying ‘any PR is good PR’ hold true for cryptocurrencies? This reflects an even broader debate within the industry about whether memecoins help or harm the legitimacy of cryptocurrency as a financial system and its opportunity to integrate with traditional finance.

The Global View on Crypto

The $TRUMP controversy has reignited concerns about crypto’s global reputation. While the industry has made strides in adoption, it still struggles with public perception associated with speculation and mistrust. The resistance may often stem from a lack of understanding about the underlying technology, as people are still hesitant about embracing the unfamiliar and new—particularly within the traditional financial sectors.

Unlike Bitcoin or Ethereum, which focus on solving specific problems or enable decentralized solutions, memecoins often have quite limited utility. The rise of memecoins like $TRUMP, $MELANIA or $HAWK TUAH reinforces this perception of crypto being driven by community sentiment, social media hype, and celebrity endorsements rather than intrinsic value. As Business Insider notes, such tokens risk overshadowing crypto’s potential to build meaningful on-chain economies and instead foster ecosystems on the edge of political territory. It is very questionable if this is an example of legitimizing crypto; memcoins, while attractive for many and a key cultural element of “crypto degens”, are a very poor example of blockchain’s role in global finance. This leads to another important dilemma: are memecoins all that bad for crypto’s reputation?

The $TRUMP token’s launch demonstrates the industry’s ability to capture mainstream attention, but it also pushes into the limelight the credibility-undermining speculation frenzy often seen in crypto. Whether $TRUMP symbolizes the beginning of a pro-regulatory movement or represents decay of the current state of the crypto reputation, only time will tell. If public figures and developers focus on creating real value, this will be the guiding light. Otherwise, the divide between crypto optimists and skeptics will only deepen. For now, $TRUMP serves as both a cultural phenomenon and a reflection of crypto’s complex identity in the digital age, and we’ll leave it at that.