MOSCOW, January 20. /TASS/. The launch of Donald Trump's own cryptocurrency has no long-term viability, but it will help the elected American leader achieve certain other goals, Nikolay Novik, head of the Institute of World Military Economy and Strategy at the National Research University Higher School of Economics, said in an interview with TASS.
"Locally, this is an excellent way for Trump and his team to make good money on the wave of national popularity and fame. Nationwide, such a PR stunt creates buzz in the media and distracts the negatively minded pro-democratic electorate and the masses. Globally, this is a clear sign and call for all hesitant economic elites of the United States and the world as a whole to interact, as well as a demonstration of the opportunities available to them in case of their comprehensive cooperation and complete loyalty," Novik said.
On January 17, Trump announced the launch of his own cryptocurrency on the Truth Social network. Its daily trading volume exceeded $11 billion, according to data from the CoinMarketCap platform.
"The launch of his own cryptocurrency, $TRUMP (Official Trump), before the official inauguration is a completely logical step. In fact, this is a meme coin or a joke cryptocurrency that has no fundamental value, a speculative instrument without any official future or prospects," Novik said.
All that said, the cryptocurrency grew in price by 600% since launching a day earlier, with a trading volume of over $10 billion, sending profits skyward, the expert noted.
"Donald Trump is a proponent of promoting innovative tools and approaches in the economy. Back in the summer of 2024, he announced plans to make the United States a "bitcoin superpower" and create a strategic reserve of this cryptocurrency. A draft law titled "S.4912 - BITCOIN Act of 2024" was even officially submitted to Congress, according to which the US Federal Reserve System will have to buy up to 200,000 bitcoins per year for five years and bring this amount to one million, which could benefit the American monetary system and stabilize the dollar exchange rate, while the US national debt will be halved by 2045," the expert told TASS.
About memecoins
Memecoins are cryptocurrencies created as a social experiment. The price of a memecoin depends on the popularity of the phenomenon on which it is based. For example, such memecoins as ‘politifi’ - a mixture of the words "politic" and "finance" - are created in support of a particular politician. The price of a memecoin depends on the level of support for a politician. Cryptocurrencies like this have no real value or practical use and are a speculative financial instrument.