According to a survey, Trump memecoins attracted new investors to cryptocurrency, accelerating adoption while igniting worries about the long-term market impact of political tokens.
Many purchasers of the Official Trump (TRUMP) and Official Melania (MELANIA) memecoins were first-time cryptocurrency investors, according to a recent survey, suggesting that the tokens contributed to the US’s wider acceptance of cryptocurrencies.
On January 18, President Donald Trump introduced his own memecoin, which attracted a lot of attention. The token’s market value was around $14.5 billion at its peak of $72.62. First Lady Melania Trump also made her MELANIA token available to the public after Trump’s memecoin debut.
1,092 Americans were asked to rate the feelings and trends surrounding the Trump family’s memecoins in a study published by NFT Evening on January 20. One in seven respondents, or 14% of the sample, reported having bought the TRUMP memecoin.
Of those buyers, 42% were making their first cryptocurrency purchase, indicating that the tokens are acting as a gateway for new investors to enter the market.
Trump memecoins indicate a wider adoption of cryptocurrencies.
Ben Zhou, the CEO and co-founder of the cryptocurrency exchange Bybit, told Cointelegraph that the Trump family’s memecoins demonstrate a change in the acceptability of cryptocurrencies:
“The introduction of new coins by President Donald Trump and First Lady Melania sets a powerful precedent for what is to come, and the year 2024 marked the beginning of a shift toward broader cryptocurrency acceptance.”
Zhou went on to say he anticipates Web3, decentralized finance, and blockchain to grow at a faster rate. According to him, the TRUMP coin indicates a transition into the Web3 age and toward onchain trade.
Trump demonstrated his ability to “create billions of dollars out of thin air,” according to Andreas Brekken, the creator and CEO of the trading platform SideShift.ai. Brekken claimed in a statement to Cointelegraph that the action aided in the uptake of cryptocurrency.
“Hundreds of thousands, if not millions, of new retail customers have joined the space as a result of this power play. Many have traded on a DEX, used wallets, and on-ramped from fiat. He remarked, “This is onboarding on steroids.”
According to up to 75% of respondents, the TRUMP token is detrimental to cryptocurrency.
The majority of survey participants voiced concerns over memecoins’ effects on the industry, despite some industry experts claiming they had helped increase the acceptance of cryptocurrencies. 75% of respondents to the study claimed that the TRUMP memecoin hurts the cryptocurrency market.
The respondents expressed worries about how political figure-driven tokens will affect the stability and integrity of the cryptocurrency market in the long run.
Furthermore, according to 55% of respondents, Trump and his spouse are manipulating the cryptocurrency market with their influence.