In the ever-dynamic world of crypto and blockchain, more and more unique projects are being launched. One such groundbreaking sector here is PoliFi, where politics, finance and cryptocurrency collide, opening up new opportunities for investors. Among the most vivid examples is $TRUMP, a memecoin themed after Donald Trump, a former US President.
Background
The tenderfoot PoliFi crypto sector, where politics, finance, and cryptocurrency converge, has minted a new generation of millionaires since a Donald Trump-themed token skyrocketed since launching on August 11, 2023. $TRUMP’s price hike is truly impressive: up from $0.015 to $17.5, as of June 1, 2024.
Symbol/ticker of the token is TRUMP, while MAGA is an abbreviation for “Make America Great Again.” This is a famous political slogan of Donald Trump, however, it has nothing to do with the project, according to its official website.
The MAGA’s initial goal is an act of charity: since its launch, project participants have donated 234.75 ETH to US veterans, whereas another 204.5 ETH is allocated to fight child trafficking.
Although the US presidential candidate is not in any way linked to the project, the following can be observed: whenever there has been a significant event related to Trump in the real world, there would be seen a direct correlation with the TRUMP’s value in the crypto market.
Back on May 8, at Trump’s Mar-a-Lago residence (or at the dinner for buyers of his NFT trading cards, to be more precise), the ex-president said he advocates for the crypto industry and added that if his voters are in favor of the cryptocurrency, they should vote for him during next US elections. The token responded by climbing from $4.22 to $6.06.
Later, on May 21, Donald Trump announced that he would begin accepting donations in crypto: Bitcoin (BTC), Ethereum (ETH), and such meme coins as Dogecoin (DOGE) and Shiba Inu (SHIB). TRUMP climbed then once more – from $7.48 to $8.64.
The token’s growth benefits Donald himself: in September 2023, MAGA’s creators transferred 579,290 TRUMPs to his crypto wallet, totaling about $8.91 million to date. Likewise, the former president holds $1.80 million worth of Ethereum and $519k worth of the MAGA VP (MVP) memecoin.
PoliFi – just a seasonal trend or a whole new round of development?
As mentioned before, PoliFi is a brand new crypto sector primarily related to politics. Looking at the recent success of the TRUMP token, one would think that it is indeed a refreshing event for the industry. In fact, there exist many other tokens in such sector, but why no word about them?
It seems as if nothing ever happened if it wasn’t for standoff between the U.S. presidential candidates. The not-so-positive relationship between the country’s current and previous president dates back more than a year, even though the upcoming election is more than 6 months away. The chances are that the PoliFi sector may not make it past the US election and things will subside more or less, given that other countries and their elections are of little interest to the crypto community.
Either way, Trump has opted for the right strategy: at least, he is now in favor of crypto, meaning he can be backed by a decent part of the U.S. population. Based on the recent Grayscale’s research, more than 47% of voters think cryptocurrency will form part of their investment portfolio in the years to come.
There have been attempts to create coins in honor of Joe Biden as well, but none have been able to overtake a token dedicated to Trump. It is confirmed by the blockchain data that the largest Biden-inspired token $BODEN boasts a market cap of $229 million, against $TRUMP with its $647 million mark.
Events surrounding the election (especially those involving Donald Trump) will keep affecting the value of the token. As election season kicks off, there will be plenty of reasons for the price to swing.
Reported earnings
Despite Trump inofficially endorsing the TRUMP token, it has emerged as an object of speculation for those betting on the outcome of his political campaign. As a result, some of the early investors in $TRUMP have generated considerable profits. Say, one wallet now holds over $5.5 million worth of tokens.
$TRUMP is actually a trailblazer in the PoliFi tokens category, a market segment whose combined market capitalization already exceeds $1.5 billion, as estimated by analytics team at CoinGecko. Numerous early investors have seen their $TRUMP holdings soar to more than $1 million, causing them to partially dump tokens in order to lock in profits and mitigate the risk of a sharp market decline.
Conversely, those who have invested in this token quite recently are now experiencing not as favorable outcome. Statistics reveal that investors are compelled to seek higher returns against a potentially reduced likelihood of success. Still, $TRUMP gained prominence after a vigorous growth, making it possible for other tokens to ensure more revenue, such as those from the memecoin sector.
Key takeaways
A widely practiced marketing strategy in the crypto segment is to send tokens to wallets associated with celebrities. In the case of TRUMP, such strategy proved to work. This news that Donald Trump’s wallet value is on the move is regularly featured in the media, bringing extra popularity to the token.
However, you better not be serious about investing in $TRUMP. While it can be stated that the blue chips of the crypto market have already become less volatile, in TRUMP’s case the price fluctuation is still wild so you may lose a sizeable part of your capital in just a single day.
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