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- The launch of a Donald Trump-backed meme coin, DJT, could further solidify his support for the cryptocurrency industry ahead of this year’s elections.
- The unconfirmed rumors have caused a major bloodbath for the PoliFi tokens that had emerged in the past few months led by MAGA and MAGA Hat.
As the cryptocurrency industry experienced heightened liquidation fueled by the Bitcoin (BTC) price drop below $66k in the past 24 hours, rumors of a possible Solana (SOL)-based meme coin backed by Donald Trump, a US presidential candidate via the Republican party, caught the attention of many traders.
According to the latest crypto market data, DJT, a meme coin thought to be backed by Trump, rallied over 180 percent in the past 24 hours to trade around $0.025 on Tuesday.
The rumors of the DJT meme coin being backed by Trump originated from an X post by Pirates Wires, a maverick media outlet. The rumors were further solidified by Ryan Selkis, the founder and CEO of Messari Crypto, who added that the investors should approach with care as the fed could be behind the meme coin.
“I’m not 100 percent sure whether the Trump meme coin is real or an op, but I’m 50-50. I offered to help the people that reached out with legal and biz intros but told them I wouldn’t take anything in return because I got the vibes that the guy who approached me is a Fed,” Ryan noted.
DJT Market Outlook
The DJT meme coin attracted significant attention from crypto traders on Tuesday, with its on-chain liquidity and trading volume around $86 million and $367 million respectively. Notably, the DJT meme coin had a fully diluted market cap of about $264 million, indicating heightened demand that could further fuel a bullish outlook.
The DJT meme coin has already attracted more than 10k on-chain holders, amid heightened speculation. Moreover, the DJT meme coin uses the token name TrumpCoin, which has close similarities with Trump Media & Technology Group Corp. (NASDAQ: DJT), the company that merged with Truth Social
Bigger Picture
The escalated involvement of US politicians with the crypto industry is an indication of an improved regulatory space ahead. As Crypto News Flash explained, the approval of spot Bitcoin ETFs and spot Ether ETFs in the United States was a major turning point in the mass adoption of web3 protocols and digital assets.
As a result, whether the Trump team officially adopts DJT meme coin or not, it is safe to assume that the crypto industry is here to stay and thrive.
Market Implications
Following the significant hype on the DJT meme coin, other crypto projects that had thrived in the name of Trump vs Biden experienced heightened market correction. According to the latest market data, meme coins with the acronym MAGA dumped double-digit percentages in the past 24 hours amid ongoing crypto correction.
For instance, MAGA (TRUMP), an Ethereum-based meme coin with a market cap of about $332 million and a daily average traded volume of around $65 million, dumped over 33 percent in the past 24 hours to trade around $7.09.
