TRUMP coin: A strategic power play in the world of cryptocurrency and politics

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Donald Trump
Donald Trump. Image: Gage Skidmore. CC BY-SA 2.0

By Dr Anandadeep Mandal
Birmingham Business School, University of Birmingham

On 17 January 2025, just days before his inauguration as the 47th President of the United States, Donald Trump made an unexpected and strategic move into the world of cryptocurrency with the launch of his TRUMP coin. This new meme coin, designed to capitalize on Trump’s immense political influence and the growing popularity of digital currencies, has already made waves in the crypto market, reaching an impressive market capitalization of $15 billion early Sunday 19th January 2025.

Trump, known for his bold political manoeuvres and his knack for brand-building, has once again positioned himself at the forefront of a new wave of political and technological innovation. While the official website emphasises that the coin is “not political” and “not intended to be an investment opportunity or a security,” its rapid success raises questions on what the launch means for the future of both the cryptocurrency market and the political landscape.

A new frontier in political engagement

The TRUMP coin is a groundbreaking initiative that merges politics with blockchain technology, offering a new way for political figures to engage with their base. Traditional political campaigns have relied on fundraising events, donations, and merchandise to connect with voters and raise funds. However, the rise of cryptocurrencies has created new avenues for politicians to interact with their supporters. With the launch of the TRUMP coin, Trump has found a way to capitalize on the growing popularity of digital currencies while offering a unique form of political engagement.

The coin is aimed at Trump’s loyal supporters, offering them a way to participate in his political endeavours while also being part of the broader cryptocurrency ecosystem. It represents a digital embodiment of loyalty, allowing supporters to not only show their allegiance but also to potentially profit from the coin’s value if it appreciates over time. In essence, the TRUMP coin is both a political statement and an investment opportunity, tapping into the power of blockchain technology to engage with a global base.

The power of meme coins

The TRUMP coin follows in the footsteps of other successful meme coins, such as Dogecoin and Shiba Inu, which gained significant popularity despite lacking inherent technological innovations. Meme coins are typically driven by community support, viral marketing, and social media influence rather than by the fundamental utility of the currency itself. The TRUMP coin is leveraging Trump’s vast social media presence and strong political following to generate interest, making it a meme coin with a purpose.

As of now 23 January, the TRUMP coin has reached a market capitalization of approximately $7.5 billion, with a trading price around $37 per coin, showing the immense power of Trump’s brand in the cryptocurrency space. To put that into perspective, this market cap puts the TRUMP coin in the same league as well-established cryptocurrencies like Polkadot and Avalanche, which have spent years building technological infrastructure and communities.

Moreover, the political angle of the TRUMP coin adds a layer of legitimacy that other meme coins lack. While it remains to be seen whether the coin will retain its value long term, its initial success signals a new era where politics and cryptocurrency are deeply intertwined.

TRUMP coin on Solana: A strategic choice

One of the most significant decisions in the launch of the TRUMP coin was choosing to build the coin on the Solana blockchain. Known for its high speed and low transaction fees, Solana has become one of the most popular blockchains for launching decentralized applications and digital currencies. The TRUMP coin benefits from Solana’s ability to process up to 65,000 transactions per second, a stark contrast to Bitcoin’s average of just 7 transactions per second and Ethereum’s 30 transactions per second.

This choice of blockchain offers several advantages. First, Solana’s speed and scalability ensure that the TRUMP coin can handle a high volume of transactions with minimal delays, which is crucial for supporting a large user base. Additionally, the low transaction fees—often as low as $0.00025—make it an attractive option for everyday users who want to trade or transfer the coin without incurring high costs.

The decision to launch on Solana also positions the TRUMP coin within the broader trend of Layer 1 blockchains that prioritize scalability and speed, which are essential for the long-term adoption of cryptocurrencies in various sectors, including finance, entertainment, and political engagement.

Impact on the cryptocurrency market

The TRUMP coin’s launch highlights the growing intersection between politics and the digital economy. As cryptocurrencies continue to gain mainstream acceptance, political figures are beginning to explore new ways to tap into the vast potential of the crypto market. This move could pave the way for other political leaders to launch their own digital currencies, further blurring the lines between politics, finance, and technology. As blockchain technology matures, we may see more politicians use digital currencies as a tool for engagement, fundraising, and expanding their influence.

In parallel with Trump’s move, US Senator Cynthia Lummis has made bold remarks on the country’s role in the global digital asset economy. Lummis has long advocated for the US to become the “Bitcoin and digital asset capital of the world.” As a leading figure in the Senate, Lummis has called for clearer regulatory frameworks that can support the growth of digital assets, viewing them as an essential part of the future economy. She believes that sensible regulation could unlock significant economic value and financial inclusivity, putting the US at the forefront of the digital asset revolution. Her statements align with broader efforts to establish the US as a leader in the blockchain and cryptocurrency sectors, as more policymakers recognize the potential of these technologies to drive innovation and create new economic opportunities.

Alongside Lummis’ vision, other key figures in the crypto space have echoed the importance of clear regulations. SEC Chair Gary Gensler has spoken on the need for enhanced transparency in the crypto market, especially to protect investors and prevent fraud. Meanwhile, private sector advocates such as Coinbase CEO Brian Armstrong have stressed the importance of developing balanced regulatory approaches that allow innovation to flourish without stifling progress.

For the broader cryptocurrency market, the success of the TRUMP coin signals that digital currencies can transcend their initial use cases as financial assets and become tools for political movements. If other political figures follow Trump’s lead, we could see a significant shift in how cryptocurrencies are used—not just as investments, but as instruments for building and maintaining political power.

Challenges and future outlook

Despite its initial success, the future of the TRUMP coin is not without challenges. Like all cryptocurrencies, it is susceptible to market volatility, and the speculative nature of meme coins could lead to significant fluctuations in value. Additionally, regulatory scrutiny surrounding digital currencies is still evolving, and Trump’s political affiliation could invite heightened attention from both U.S. and international regulators.

Moreover, the political nature of the TRUMP coin could limit its appeal to a broader audience. While it is likely to resonate with Trump’s supporters, those who oppose his political views may be less inclined to engage with the coin. This could restrict its widespread adoption and prevent it from becoming a mainstream cryptocurrency.

However, if the coin continues to grow and finds new ways to engage with its audience, the TRUMP coin could become a significant player in both the cryptocurrency and political spheres. Its success will depend on how well it can balance its political message with its functionality as a digital asset, and how it navigates the ever-changing regulatory landscape.

The launch of the TRUMP coin marks a bold step in the merging of politics and cryptocurrency. With a market capitalization averaging $7 billion in its early days, the coin has already demonstrated the immense potential of leveraging political influence in the digital currency space. While challenges remain, the TRUMP coin could play a significant role in shaping the future of both political engagement and cryptocurrency adoption. As we look ahead to Trump’s second term in office, it’s clear that his involvement in the cryptocurrency world will continue to make waves, creating new opportunities for the broader digital economy.



The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of the University of Birmingham.

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