The introduction of President-elect Donald Trump’s TRUMP memecoin represents a paradigm shift in how the United States and the rest of the world approach crypto, broker Bernstein said in a research report on Monday.
“This signifies a new regulatory era, where governments view crypto as a technology to directly reach the masses,” said analysts led by Gautam Chhugani.
The official Trump memecoin debuted on the Solana blockchain on Saturday. It reached a fully diluted market capitalization of approximately $73 billion, making it one of the most successful token launches ever. It fell almost 40% on Sunday when his wife Melania launched her own memecoin, MELANIA.
A symbolic launch by the president-elect is an important signal for crypto builders in the United States, especially given the Biden administration’s crackdown on the sector, Bernstein said.
It says “build in the US and don’t hesitate to launch tokens – a new era of crypto regulation is here,” the authors wrote.
Nonetheless, the market may want more information on the use of the 80% of TRUMP’s supply held by CIC Digital, an entity wholly owned by the Donald Trump Revocable Trust.
A memecoin that capitalizes on Trump’s brand and policies has “potential longevity” but will depend on the design of the token to “make it less extractive due to 80% internal supply,” the report adds.
The TRUMP token will be listed on major crypto exchanges including Coinbase and Binance, according to company announcements.
Read more: Coinbase and Binance plan to list Donald Trump’s official TRUMP token after phenomenal debut
UPDATE (January 20, 11:18 UTC): Replaces the main image.
