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Trump Memecoin Signals Start of a New Crypto Regulatory Era: Bernstein
The token introduction is a big positive for crypto builders in the U.S. following the Biden administration's crackdown on digital assets, the report said.
Updated Jan 20, 2025, 11:18 a.m. Published Jan 20, 2025, 10:52 a.m.
What to know:
- Donald Trump's memecoin suggests the start of a new crypto regulatory era, the report said.
- Bernstein said it's a big positive for crypto builders in the U.S. who suffered under the Biden administration's crackdown.
- The market may want more information on what Trump insiders will do with their 80% supply of the token, the broker said.
The introduction of President-elect Donald Trump's TRUMP memecoin is a paradigm shift in the way the U.S. and the rest of the world approaches crypto, broker Bernstein said in a research report Monday.
"It signifies a new regulatory era, where governments see crypto as a technology to reach out to the masses directly," analysts led by Gautam Chhugani said.
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Trump's official memecoin debuted on Saturday on the Solana blockchain. It rose to a fully diluted market cap of about $73 billion, making it one of the most successful token launches ever. It tanked almost 40% on Sunday when his wife Melania launched her own memecoin, MELANIA.
A token launch by the president-elect is a big signal to crypto builders in the U.S., especially given the crackdown on the industry by the Biden administration, Bernstein said.
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It says "build away in the U.S., and don't be shy of launching tokens - a new crypto regulatory era is here," the authors wrote.
Still, the market may want more information on the utilization of the 80% of the TRUMP supply that is held by CIC Digital, an entity that is 100% owned by Donald Trump Revocable Trust.
A memecoin that capitalizes on Trump's brand and politics has "potential longevity," but will depend on the token design to "make it less extractive due to 80% insider supply," the report added.
The TRUMP token will be listed on major crypto exchanges including Coinbase and Binance, according to announcements from the companies.
Read more: Coinbase, Binance Plan to List Donald Trump's Official TRUMP Token After Its Phenomenal Debut
UPDATE (Jan. 20, 11:18 UTC): Replaces lead image.
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