Kraken has made headlines by becoming the first major U.S.-based cryptocurrency exchange to list the Official Trump (TRUMP) meme coin, launched by Donald Trump himself. However, the token's debut was marred by a significant 35% decline in value shortly after trading commenced.
Key Takeaways
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Kraken is the first major U.S. exchange to list the TRUMP meme coin.
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The token experienced a 35% drop in value shortly after its launch.
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TRUMP's market cap soared to nearly $6 billion before the decline.
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Other exchanges like Crypto.com and Bybit also listed the token.
The TRUMP token, which celebrates Trump's leadership and campaign slogan "Fight, Fight, Fight," was launched on January 17 through a post on Truth Social and X (formerly Twitter). Trump promoted the token as a rallying point for his supporters, stating, "My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING!"
The token's official website describes TRUMP as a symbol for those who "don’t back down, no matter the odds." Despite the initial excitement, the token's value plummeted after its trading began at 20:15 PM UTC on January 18.
Market Reaction
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The initial market frenzy saw TRUMP's market cap reach nearly $6 billion.
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The token's trading volume surged, surpassing that of retail sensation GameStop (GME).
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Other exchanges, including Crypto.com and Bybit, quickly followed Kraken's lead in listing the token.
Behind the scenes, the token is managed by Fight Fight Fight LLC, which plans to release an additional 800 million TRUMP tokens over the next three years. The first batch of 200 million coins was made available during the launch.
NFT Collection Surge
In addition to the TRUMP token, the associated NFT collection also saw a significant increase in interest. The floor price of Trump's NFT collection surged by 400%, fueled by speculation that holders might receive allocations of the TRUMP memecoin. However, analysts have since calmed talks of any rewards for NFT holders, clarifying that the term "meme cards" refers to the TRUMP tokens, not the NFTs.
Future Listings
Major exchanges like Coinbase and Binance have announced plans to list the TRUMP token, despite initial hesitations regarding its political nature. Coinbase confirmed its intention to add the token to its platform, while Binance opened trading for TRUMP on January 19.