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“Trump knows how to make money.” Who told me that was my sister, this was January 18, a day after Trump launched his “meme” coin, who hit all the speed records in appreciation and brought the table some questions about financial interest vs power.
Explaining a little more, January 17 was marked by the release of the token that represented power, or rather support for the then president of the United States – he sworn in the White House on the 20th.
This token gained extreme volatility in the first 48h of its release even beating 14 billion marked value, amazing, but what?
What about what?
Despite its explosive initial appreciation, this token seems to have a more speculation aimed at a real use that benefits society. The launch was strongly driven by marketing and association with the image of Donald Trump, which generated a purchase fever, especially between supporters and short -term speculators.
In the crypto universe these are affectionately called “shitcoins”, which basically has no use, very similar with other fevers like dogecoin or Shiba Inu. Unless you are involved in the project, as the token administration pocketed a good jackpot.
Considering the volume of trading rates (nearly $ 100 million in a few weeks), the token seems to have served to generate quick revenue for its creators and for those who entered the project very early. The use in the name Trump on the eve of possession helped the buzz and caused the well-known pump-and-dump phenomenon, which is when the currency rises explosively and who benefits is the initial investors, who may or may not have privileged information, and after Lots of media, new investors enter the market in what we know we understand as the end of the rise movement, where what they entered earlier start to make their profits, so boosting the price down.
How does this story end?
There is a whole ethical discussion behind this token story called Trump. There is misuse of the president’s name, because he denies direct participation, although he released this “support” on his social networks. His more loyal followers are invested in a financial product purely in emotion, without even being aware of the risks of the cryptocurrency market.
Although the crypto market still operates in a more flexible regulatory environment in many countries, practices aimed at manipulating the price of an asset can be considered illegal in various jurisdictions. If it is proven that there has been an intentional coordination to inflate the token value and then sell it in dump, those responsible may face legal sanctions.
Depending on jurisdiction, a token like Trump can be considered a security value. If so, it should be registered with regulatory agencies, such as SEC (in the US). Lack of registration and non -compliance with disclosure rules may result in investigations and legal penalties for those involved.
Trump promises to regulate cryptocurrencies with SEC, and if this happens, this type of practice with clear signs of ethical inconsistency will be taken into consideration, and probably punished.
*Gabriel Fauth and Future market operator for 7 years and has been one of the contributors of market analysis and evaluations in the TradingView community. TradingView is a tool for graphics for market execution and analysis, as well as the largest social network for investors and traders.
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