Home Money Can £11bn $Trump and $Melania meme coins make you a fortune? The world’s leading crypto experts tell us a VERY surprising truth…

Can £11bn $Trump and $Melania meme coins make you a fortune? The world’s leading crypto experts tell us a VERY surprising truth…

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Donald Trump celebrated his inauguration as the 47th president of the United States with the launch of the so-called 'meme coin'

The value of cryptocurrency meme coins launched in the past three days by President Donald Trump and his wife Melania is skyrocketing, leaving those who bought early with attractive returns worth several times their original investment.

So should they jump on board, hoping that President Trump’s inauguration will continue to drive prices higher, or is it better to stay away? And if you buy, what exactly will you own?

Trump celebrated his inauguration as the 47th president of the United States with the launch of the so-called “meme coin” last Friday, January 17. The token initially skyrocketed from around $7 (£5.72) in value to a high of $75 (£58.80). ).

According to cryptocurrency trader Coinbase, this meant that the total value of coins in circulation at the time was worth more than $14 billion (£11.44 billion).

But when his wife Melania launched a rival cryptocurrency, $Melania, on Sunday, a day before Trump officially took office, $Trump’s value fell by about half, to $7 billion. It has since recovered and the tokens are now trading for around $54 (£44.10).

The $Trump and $Melania coins are called meme coins because, unlike other cryptocurrencies like Bitcoin, they are issued as tokens to represent a historical moment, rather than a digital currency that can be traded as an alternative to cash.

Traditionally seen as a novel idea, the fact that the $Trump coin rose more than ten times its initial value could attract investors’ attention.

However, given that Trump owns about 80 percent of the 200 million tokens released so far, which are held by CIC Digital, affiliated with the Trump Organization conglomerate, there are concerns that it may be primarily a money-making project. new head of the White House.

Donald Trump celebrated his inauguration as the 47th president of the United States with the launch of the so-called ‘meme coin’

One billion Trump coins will be released for people to purchase over the next three years, but once his four-year term is complete, it is unclear whether they will continue to be offered for trading.

Experts warn against investing money in the recently launched $Trump or $Melania cryptocurrencies, but treating them as a “digital memory.”

Glen Goodman, author of the best-selling book The Crypto Trader, says: “Make no mistake: these should be viewed only as a collectible, a digital souvenir, and not a currency that can be traded.”

‘It reminds me of cigarette cards of iconic cricket stars of the past that used to be highly valued but are now almost worthless. Even if Trump were considered the WG Grace of his time as president, issuing a billion cards, how much do you think they will end up being worth in the coming years?

He adds: “Right now Trump is on top of the world; there is a feeling of goodwill to make America great again.” But what will happen midterm when some unpopular decisions have been made (or when he is no longer president)? That feel-good factor could soon disappear and reduce the value of your meme currency along with it.

Even though $Trump initially increased its price tenfold after the launch, the $Melania token did not see the same increase, but appeared to reduce the value of the other meme coin. The $Melania had a similar launch price of around $7 and just a day later was trading up around 40 percent to around $10.

Goodman says, “As always with Trump, it’s all about him.” He is the MAGA icon and US President, and collectors will be drawn to him and want to buy a token to put in their digital wallet and show off to their friends. “Melania may have more style, but she is not as iconic.”

Chris Beauchamp, an analyst who studies cryptocurrencies at trading platform IG Markets, says: “The huge enthusiasm for a new president has helped drive up the value of his meme coin.

When Melania Trump launched a rival cryptocurrency, $Melania, it caused $Trump's value to roughly halve to $7 billion (£5.7 billion).

When Melania Trump launched a rival cryptocurrency, $Melania, it caused $Trump’s value to roughly halve to $7 billion (£5.7 billion).

‘Right now, it means a lot of people may be rolling their eyes in disbelief. But just look at how when the $Melania token was launched it became a distraction, reducing $Trump’s immediate appeal. “This shows how volatile it can be.”

However, Beauchamp believes that the launch of a Trump token could mean good news for cryptocurrencies as it signals Trump’s openness to digital money trading.

He says: ‘When Bitcoin surpassed the $100,000 mark in December, it was a new high. While the $Trump token should only be viewed as a collectible and not an investment, it has also fueled interest in cryptocurrencies, causing Bitcoin to hit a new all-time high above $109,000 on the day of the takeover. of Trump’s inauguration.

Even though the launch took the cryptocurrency trading market by surprise, major traders such as Binance, Coinbase, and Kraken have announced that they plan to trade both meme coins on their online marketplaces.

Petr Chromy, a cryptocurrency trader and IT engineer, who has been trading for over a decade, says: “To me, Trump meme coins are completely ridiculous. You can go shopping with well-known cryptocurrencies, such as Bitcoin or Ethereum, buying anything from a cup of coffee to a Tesla car. But you can’t buy anything with $Trump or $Melania.’

He adds: ‘It appears to be little more than a money grab, the supply of which is carefully controlled. It is pure speculation about something with no intrinsic value. My opinion is that this is not an investment but a useless bet.’

Chromy suggests that if someone was hoping to make money from meme coins, they would be much better off investing in the technology company Solana, which provides the blockchain technology, the database from which the $Trump and $Melania meme coins are distributed. .

He says: “Remember that during the gold rushes of the past, those who invested in making picks and shovels often made much more money than prospectors who simply hoped to get lucky.”

Solana launched five years ago when it began trading at just $0.95 a share. Interest in the blockchain technology it provides soon captured the imagination of investors.

Just three years ago, Solana was trading at $84, but its shares have continued to rise since then, along with an increasing number of cryptocurrency launches.

The news that Trump was using Solana for his own $Trump token has seen it enjoy a 20 percent price rise in just three days: from $221 (£180) on Friday to $253 (£207) on Monday, the day it was inaugurated.

Coinbase Global is another publicly traded software specialist that has been involved in supporting cryptocurrency launches using its blockchain technology.

Showing the volatility of the sector, it has provided an occasionally bumpy ride for investors: the share price has fallen 14 percent over the past five years, even though the value of currencies like Bitcoin has performed so well. .

However, in the last 12 months the share price has recovered markedly and is up 130 per cent in a year, from $167 (£136) to $295 (£241) on Monday.

Trump won the US presidential election with more than 77 million votes, compared to Kamala Harris, who received about 75 million. If you want to sell the billion meme coins that are expected to be released, it means that each of your voters will have to buy more than 13 of your meme coins if demand can exceed supply and increase the value. At the current value of $54 (£44) per token, it means each voter would have to pay $702 (£573).

But best-selling author Mr. Goodman worries that the $Trump meme currency will not only be bought by fans, but also by wealthy people who want to buy influence. This is because if the value of the token increases, then Trump will be able to make money as the architect behind the idea.

Goodman also notes that unlike other collectibles, such as actual souvenir plaques, there is no physical asset that can hold just one note in the digital wallet owned.

He says: ‘However, I fear that the crypto fever madness is not over yet, and Trump could well be opening the floodgates for other celebrities to launch their own meme coins as a way to raise money from his followers.

“Investors should consider the token as an “imaginary thing” as it is not an established cryptocurrency like Bitcoin.”

The Trump coin website, gettrumpmemes.com/#how-to, states: ‘Trump memes are intended to function as an expression of support and commitment to the ideals and beliefs embodied by the “$TRUMP” symbol and the associated artwork. , and are not intended to be or be the subject of an investment opportunity, investment contract or security of any kind.’

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