The Risky and Unregulated World of $TRUMP Meme Coin: A Guide for Investors

The $TRUMP (CRYPTO: TRUMP) coin, a political token built on the Solana (CRYPTO: SOL) blockchain, has captured the attention of cryptocurrency enthusiasts. However, investors should be wary of this coin as it is not an investment but rather a way to express support for the ideals represented by its $TRUMP symbol. Despite its initial surge to a high of $73.43, the coin is currently trading at just over $10, down about 85% from its all-time high. According to Chainalysis data, around 40% of $TRUMP buyers have lost money on paper, while the people behind the project have made more than $324 million in trading fees. Additionally, 58 wallets have seen gains of more than $10 million. This structure is designed to prevent creators from selling tokens early in a project, but it also means that a limited number of people still control a large proportion of tokens. The $TRUMP coin is part of a new trend in cryptocurrency known as PolitiFi, which combines politics with crypto. While there are only a few examples of this trend so far, such as $TRUMP and $MELANIA (the Official Melania Meme), it is clear that these coins carry a high risk of fraud and are not intended as investments. The Securities and Exchange Commission (SEC) has also stated that they are not securities, which raises ethical questions about oversight. It is difficult to buy or sell $TRUMP at the right point in time, and there are no guarantees that the price will go up. As the LIBRA scandal in Argentina showed, it's the insiders who are in the best position to profit from meme coin speculation. Therefore, if you're considering buying $TRUMP as an investment, there are better prospects with other assets such as Bitcoin (CRYPTO: BTC), which has more of a track record than any other crypto and is gaining traction as a hedge against market turmoil. Ultimately, the Official Trump coin does not make sense as a long-term investment due to its less-than-transparent leadership structure and tokenomics. When insiders control 80% of any token, it is too easy for them to manipulate the price, even with a three-year vesting period. Therefore, investors should be cautious and consider other investment options before jumping into this risky and unregulated market.