Whether Trump's memecoin pushes crypto in the 'right direction' remains unclear

The crypto industry has high hopes that United States President-elect Donald Trump will bolster crypto adoption both in the US and globally. However, only time will tell if his newly launched Solana-based memecoin is a step in the right direction.Trump’s memecoin, Official Trump (TRUMP), launched on Jan. 17 and has skyrocketed by 10,643%, reaching $27.50 at the time of publication, according to data from the memecoin trading platform Moonshot.Trump’s memecoin onboarded new users to cryptoIt comes just days before Trump is set to be inaugurated as the US president on Jan. 20, with speculation he may even designate crypto as a national priority on his first day in office.Crypto exchange Swyftx lead analyst Pav Hundal told Cointelegraph that the strong reception of the TRUMP memecoin so far is a good sign, giving the industry a glimpse of what might come during the next four years of the presidential term.“No-one wants to hear from the bears right now. Trump 2.0 is already a sugar rush and he hasn’t even started his Presidency yet,” Hundal said. He added:“Solana has just obliterated its previous 24hr decentralised exchange volumes off the back of a Trump meme coin. It’s astonishing.”The memecoin launch triggered a rally in Solana’s native token, pushing it to an all-time high of $270.Although TRUMP has shown how high and quickly demand for crypto can surge, Hundal said that the “true value” of Trump’s presidency will depend on the “long-term environment it creates.”“Here we are on the verge of sensible regulation,” he said.Meanwhile, others say while the TRUMP token has attracted many new users to crypto, it could harm the industry in the long run.It comes after initial doubts surfaced when the token was first announced on Trump’s social media, with some wondering if his account had been hacked.Scott Melker, aka “The Wolf of All Streets,” said in a Jan. 18 X post that Trump’s memecoin is a significant benefit for crypto but “bad for humanity.” Melker added:“Donald Trump is likely onboarding millions of new people to the space.”Moonshot, the platform Trump pointed his followers to for purchasing the memecoin, reported more than 200,000 new onchain users since the token launched.“It’s a gratuitous cash grab, not sure how anyone can argue against that,” Melker said while pointing out that insiders sniping the supply at launch means they hold 80% of the supply.“Making billions on vapor,” Melker said. There have been concerns over the concentration of 80% of the tokens in a single wallet. Arkham Intelligence said, assuming the wallet belongs to Trump, the memecoin pushed up Trump’s net worth to $22 billion overnight.On the flip side, others say this is a major positive for token holders.Crypto advocate Erik Thoughts said in a Jan. 18 X post that if Trump really owns 80% of the supply, it could make the TRUMP token one of the top three "safest coins" to hold.“The majority of the supply is protected from a rug pull by someone who has a vested interest in the coin doing well,” he said.It may not be the ‘right direction for crypto’TradeZella founder Umar Ashraf said he doesn’t believe that Trump, given his position, should have his own memecoin or even be promoting his own memecoin.“Not the right direction for crypto,” Ashraf said.Moonwell Finance founder Luke Youngblood said it is “bad long term” for the crypto industry. However, in an open letter to Coinbase CEO Brian Armstrong, Youngblood still said the crypto exchange should list the token.He argued that Trump supporters will want to buy the token regardless and Coinbase is a more accessible place to trade “where they won’t get scammed.”The launch of the memecoin coincided with the Trump-honoring “Crypto Ball,” a high-profile event that brought together industry leaders such as Michael Saylor of MicroStrategy, Coinbase CEO Brian Armstrong, the Winklevoss twins of Gemini, and David Sacks, Trump’s crypto and artificial intelligence adviser.