President-elect Donald Trump’s introduction of the TRUMP memecoin is a paradigm shift in the way the United States and the rest of the world approach cryptocurrencies, broker Bernstein said in a research report on Monday.
“It means a new regulatory era, where governments see cryptocurrencies as a technology to directly reach the masses,” said analysts led by Gautam Chhugani.
Trump’s official memecoin debuted on the Solana blockchain on Saturday. It rose to a fully diluted market capitalization of approximately $73 billion, making it one of the most successful token launches in history. He plummeted almost 40% on Sunday when his wife Melania launched her own memecoin, MELANIA.
The president-elect’s launch of a token is a great sign for cryptocurrency creators in the US, especially given the Biden administration’s crackdown on the industry, Bernstein said.
It says “build in the US and don’t be afraid to launch tokens: a new era of crypto regulation is here,” the authors wrote.
Still, the market may want more information on the utilization of the 80% of TRUMP’s supply that is held by CIC Digital, an entity 100% owned by the Donald Trump Revocable Trust.
A memecoin that capitalizes on Trump’s brand and politics has “potential longevity,” but will depend on the token’s design to “make it less extractive due to 80% domestic supply,” the report adds.
The TRUMP token will be listed on major crypto exchanges including Coinbase and Binance, according to the companies’ announcements.
Read More: Coinbase and Binance Plan to List Donald Trump’s Official TRUMP Token After Phenomenal Debut
