The chief executive of the digital asset analytics firm CryptoQuant is outlining what gives President Donald Trump’s newly launched memecoin value.
The Official Trump (TRUMP) memecoin launched on Friday and rapidly surged in price to become a top-30 crypto asset by market cap.
The asset is trading at $40.47 at time of writing and is down nearly 40% in the past 24 hours but up more than 518% since Friday. It already has a market cap of more than $8.1 billion.
CryptoQuant CEO Ki Young Ju says retail traders think that financial markets are all about following trends and “chasing memes.”
“What gives Trump’s meme coin its value? Unlike traditional securities, which pool investments for productive activities, celebrity meme coins don’t directly create value. Instead, Trump is likely to use his coin holders as a powerful community base for collective action. If you’re thinking about investing in Trump Coin, the key question is how much influence his community will gain during his presidency. The coin’s value depends entirely on what Trump does. With his fervent fan base, it’s unlikely Trump’s meme coin will ever go to zero – unless he deliberately pulls the rug.”
Young Ju says a memecoin’s value depends on whether its associated community acts in ways that benefit society.
“A community with goodwill could turn a meme coin into a valuable asset. But on the flip side, it would be terrifying if a cult or terrorist group used a meme coin to build a massive following.”
The CryptoQuant executive also predicts that more memecoins will be launched under Trump’s administration.
“The Trump administration has embraced free markets instead of regulated markets, and over the next four years, we’re likely to see all kinds of experiments with meme-driven communities in the crypto space. This wave is unstoppable – at least until 2028.”
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
