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How Serious Are Trump and Other Presidential Candidates about Cryptocurrency?

2024-06-07 03:36:06

Donald Trump, the presidential candidate, demonstrates a serious interest in cryptocurrency through his recent speech and substantial holdings in recent months. Not only him, but also other candidates like Joe Biden and Robert F. Kennedy Jr. are on the same side to support crypto applications. What value could this bring to the crypto market? 

Highlights:

  • Trump's stance on cryptocurrency brings a vision to the market.
  • Other candidates are also extending an olive branch to the cryptocurrency industry.
  • Trump and the running election catalyzes meme coins inspired by celebrities.
  • The US election is expected to continue driving the meme coin market this year.

Trump's Statements on Cryptocurrency

On May 27, blockchain intelligence firm Arkham reported that Donald Trump's cryptocurrency portfolio had crossed $17.5 million. One of the attributions includes that his 579,290 TRUMP tokens experienced significant growth. According to CoinEx, TRUMP reached an all-time high of $17.31 on June 1. This brought the Donald-Trump-referencing meme coin currently valued at around $8.39 million.

However, a few years ago, Trump voiced skepticism about cryptocurrencies when compared to the U.S. dollar. "The currency of this world should be the dollar. And I don't think we should have all of the Bitcoins in the world out there. I think they should regulate them very, very high," Trump said in a 2021 interview with Fox Business

However, following a successful foray into Trump-branded NFT buying and selling playing cards (a number of which, the "Mugshot Edition NFTs" earned the holders the chance of having dinner with Donald), and with crypto coverage coming up as an enormous issue on the marketing campaign path in the latest weeks, Trump appears to be positioning himself as a pro-crypto candidate.

How serious is Trump about cryptocurrency? Trump aims to appeal to voters interested in the growing digital asset market. This approach suggests that he may advocate for favorable crypto policies if elected, aligning himself with the interests of crypto enthusiasts and investors.

During his presidential marketing campaign conference in Washington on May 25, Donald Trump once again made a great comment about Bitcoin and crypto.

Trump stated, “I will make certain that the future of crypto and Bitcoin might be made inside the USA … I will guide the right to self-custody to the nation’s 50 million crypto holders.” He additionally vowed, “I will hold Elizabeth Warren and her goons away from your Bitcoin. And I will in no way allow the creation of a Central Bank Digital Currency (CBDC).”

This ought to be even more bullish for crypto than the approval of Bitcoin and Ethereum ETFs this year.

TRUMP meme token witnessed a surge in price after Trump’s statement, reaching an ATH of $17.31 on June 1, according to CoinEx.

Trump’s Stand Would Benefit Cryptocurrency

After Donald Trump’s U-turn on cryptocurrency, some of his potential rivals and others also addressed the issue, showing their commitment to crypto in response to Trump.

Robert F. Kennedy Jr., one of the U.S. presidential candidates, promised that he would foster crypto as a transactional currency if elected at a press conference at Consensus 2024. "I think it should be treated as a currency; we shouldn't be taxing it as capital gains. I think there are issues in how we do that. I believe that it should be a currency used to purchase things like apples, lunches and coffee, and that people can do that."

There are at least three reasons why Trump’s positive comments could motivate the crypto market:

  • Positive statements from a high-profile figure like Trump could increase public interest and adoption of cryptocurrencies, including not just Bitcoin and Ethereum. As a political figure, his views could influence policymakers to create more supportive legislation for cryptocurrencies in general.
  • Trump's positive stance might indicate a potential shift in regulatory attitudes, leading to more favorable regulations for the entire crypto ecosystem. Positive comments from a prominent US figure could also influence how other countries perceive and regulate cryptocurrencies, potentially leading to a more favorable global regulatory environment.
  • Endorsements from high-profile figures generate extensive media coverage, which can attract new participants to the crypto market, increasing overall demand for the crypto market.

Trump's Partnership with Elon Musk Is an Advantage

When Elon Musk, one of the world's wealthiest people, joins Donald Trump, the impact will be even bigger.

Not long ago, the Wall Street Journal reported that the pair of public icons speak on the phone several times a month, and Musk is being considered a potential policy adviser if Donald Trump wins the election.

The discussions include the possibility of giving Musk formal influence over economic and border security policies. Musk has reportedly informed Trump about his efforts to persuade influential business leaders not to support Joe Biden.

Additionally, there were talks about funding a project to prevent voter fraud, but no further details were provided. A spokesperson for the Trump campaign stated that any individual's role in the presidency will be decided by Trump himself.

Following a meeting with Trump in March, Musk stated that he would not donate money to either Trump or Biden but instead aims to use his influence to rally support against Biden.

We all know Musk’s vision for crypto. So that is another good sign.

Review of Trump-Related Meme Coins

Trump (MAGA) meme coin crashed 35% on May 30 as Donald Trump was found guilty on 34 felony counts related to falsifying business records and the case involving adult entertainer Stormy Daniels.

However, MAGA quickly bounced 57% to trade at $14.94 at the time of writing, up from its previous support of $9.59.

Meme coins had a good month as cryptocurrency took center stage in the ongoing US election campaigns. Between Democrats, led by President Joe Biden, and Republicans, led by former President Donald Trump.

Besides a surge in social media mentions, the top 50 meme coins recorded a 10% increase in market capitalization. Among them, MAGA, TREMP, BODEN, and other meme coins enjoyed a rebound and outperformed Bitcoin while the broader market struggled when Bitcoin price slipped below $63,000.

Trump’s Influence on Other Meme Coins

Trump-related meme coins have a noticeable influence on the prices of other meme coins such as PEPE, PUPS, and BRETT. When Donald Trump makes positive comments about cryptocurrency or when his related meme coins experience a surge, it often creates a broader market effect.

Investors looking to capitalize on the hype surrounding Trump’s endorsements may also start investing or trading similar meme coins, driving their prices up. This domino effect can lead to increased trading volumes and heightened interest across the meme coin market: When Trump’s coins experience price fluctuations due to his statements or news involving him, other meme coins follow suit.

This can be attributed to the speculative nature of meme coins, where investor confidence and market sentiment play bigger roles in price movements.

The Rise of Celebrity Meme Coins

Those meme coins inspired by Donald Trumps also facilitate a trend of celebrity meme coins. 

Celebrity meme coins leverage star power to attract investment, with notable examples like Caitlyn Jenner's JENNER coin and Iggy Azalea's MOTHER. These coins, often launched through platforms like Pump.fun, gain traction through social media promotions.

However, Jenner's JENNER coin quickly faced issues and controversy, as she claimed promoter Sahil Arora owed her substantial money and mismanaged the project, accusing him of scamming her. The accusation echos complaints from other celebrities like Rich the Kid, exposing potential pitfalls in these projects.

Arora, known for dubious practices such as liquidity removal, has left many investors and celebrities disgruntled. The JENNER coin, initially successful, dropped 79% in the last 30 days after its peak after these controversies, highlighting the need for greater transparency and accountability in the crypto space.

Stay an Eye on Trump and the Meme Coin Market

While Donald Trump may not have personally initiated the recent wave of meme coin, he is certainly one of the initiators. As the first president in U.S. history to accept Bitcoin for campaign donations, this underscores Trump's broader strategy to appeal to the over 50 million cryptocurrency enthusiasts and investors in the country.

In addition to his TRUMP holdings, Donald Trump also possesses a significant amount of Ethereum (ETH), with 464.2 ETH valued at approximately $1.75 million, and holds a million MVP tokens worth around $473,000.

However, his guilty verdict in a hush-money trial will significantly impact his qualification to run for office and raise other public concerns. How the cryptocurrency community responds to Trump, whether by launching more meme coins or other projects to support him or, conversely, to support his opponents, will also create a different atmosphere in the market.

Wherever Donald Trump goes, he stirs up excitement and controversy. Let’s see what news revolves around him and how it could drive the crypto market for the rest of this year.

Disclaimer: Please note that the information provided on this website is intended for informational purposes only. CoinEx assumes no liability for any financial losses resulting from cryptocurrency trading. It is advised that you conduct your own research.

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