Bernstein Analyzes $TRUMP Meme Coin: “A New Chaotic Era in Cryptocurrency Is Here, Regardless of Perspective”

Please note that this is not financial advice. The author does not hold any positions in the stocks mentioned here.

Recent Developments in the Crypto Space

The recent whirlwind of crypto activities by the 47th President of the United States has sparked significant interest and speculation. It all began with the unexpected launch of the $TRUMP meme coin late last Friday, and it continued with a Trump-affiliated entity’s participation in Ethereum staking on Monday. This series of rapid developments has left many in the market wondering what might unfold next. However, financial analysts have begun to weigh in, suggesting that there is a strategic method behind this apparent chaos.

Understanding the $TRUMP Meme Coin

At its core, the $TRUMP meme coin aims to unite fans and investors who appreciate the influence of the President’s celebrity status. Currently, there are 200 million $TRUMP coins available for trading, but it’s important to note that this number is set to increase to 1 billion over the next three years. The unreleased supply is being held by affiliates of the Trump Organization, specifically CIC Digital LLC in collaboration with a Delaware-based entity named Fight Fight Fight LLC.

Market Impact and Valuation

Prior to the launch of the $MELANIA meme coin on Sunday, the $TRUMP coin reached an impressive market capitalization of approximately $13 billion. When considering the unreleased supply, its fully-diluted valuation soared to around $70 billion. However, the introduction of the $MELANIA coin stirred market concerns regarding potential dilution and additional family-linked crypto projects in the pipeline.

Bernstein on $TRUMP Coin: “Whichever way you see it, we think a new chaotic crypto era is here. The President of America has his own coin. Our view would be to view the event as a signal that a new crypto regulatory era is here to stay and invest in the more valuable parts of the…

— Wall St Engine (@wallstengine) January 21, 2025

Analysts Weigh In

Leading brokerage firm Bernstein elaborates on the situation, characterizing these movements as indicative of a “chaotic crypto era.”They assert that the emergence of a presidential cryptocurrency marks the onset of substantial changes in the regulatory landscape:

“Whichever way you see it, we think a new chaotic crypto era is here. The President of America has his own coin.”

Bernstein’s analysis continues, encouraging stakeholders to focus on investing in the more valuable segments of the cryptocurrency market while acknowledging that certain challenges may still evoke hesitancy:

“Our view would be to consider the event as a signal that a new crypto regulatory era is here to stay and invest in the more valuable parts of the ecosystem. But some may still cringe – it is what it is.”

Positive Outlook for Digital Assets

TRUMP’S MEME COIN SEEN AS POSITIVE SIGNAL FOR CRYPTOS

Donald Trump’s decision to launch his own cryptocurrency meme coin is being taken as a positive signal for the digital asset market, Hargreaves Lansdown analyst Susannah Streeter says in a note. Trump and his wife have both…

— *Walter Bloomberg (@DeItaone) January 20, 2025

In a similar vein, Susannah Streeter from Hargreaves Lansdown regards the $TRUMP meme coin’s launch as indicative of a positive trajectory for digital assets. She believes that Trump’s ambitions to establish the U.S. as the premiere crypto region can pave the way for cryptocurrencies to gain mainstream acceptance with well-defined regulations:

“Nevertheless, investors should be mindful of getting carried away in a wave of speculation, with money they can’t afford to lose.”

As of the latest update, the $TRUMP meme coin possesses a market capitalization of approximately $7.95 billion and a fully-diluted valuation of $39.79 billion.

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