Cryptocurrency analyst Miles Deutscher described the launch of Donald Trump’s memecoin TRUMP on the Solana network as a pivotal moment for the crypto world.
In a detailed Twitter message, Deutscher outlined how the launch could reshape the industry, with significant bull and bear implications.
Before presenting his analysis of the potential impact, Deutscher said:
“The TRUMP launch changed the nature of crypto in many ways. But it's not as simple as 'rise' or 'fall'. It's a nuanced issue.”
Deutscher listed several key reasons why the launch of TRUMP will have a positive impact on the crypto market:
- Bullish on Solana (SOL): With Solana being chosen as the platform for TRUMP, the network has been unofficially dubbed “America’s chain,” which could boost its reputation and adoption.
- Pro-crypto stance solidifies: Trump’s endorsement of a cryptocurrency signals his strong support for the industry, potentially influencing pro-crypto policies in the US.
- Potential policy supports: Deutscher thinks Trump’s launch could pave the way for policies in favor of Bitcoin (BTC), real-world assets (RWA), decentralized finance (DeFi), and altcoins.
- Rising interest: With apps like Moonshot climbing the app store rankings, crypto could see a wave of mainstream interest, especially as the launch receives more media coverage in the coming weeks.
- Green light for innovation: Deutscher noted that this move could open the door for more capital inflow and innovation in the US crypto market, but he warned that there is a flip side to this argument.
While acknowledging the positives, Deutscher also identified potential downsides to Trump’s memecoin launch:
- Liquidity concerns: TRUMP’s rise could take liquidity away from other on-chain altcoins, potentially hurting their performance.
- Reputational risk in Congress: The launch could negatively impact crypto’s image among policymakers and possibly hinder Trump’s ability to enact pro-crypto legislation.
- Dilution via the memecoin craze: TRUMP’s success could inspire a wave of similar launches by celebrities and public figures, leading to market dilution despite increased exposure and engagement.
- Acceleration of the market cycle: Deutscher warned that increased volatility often precedes market tops and suggested that the launch could signal an overheated market.
- Bearish trend for Ethereum (ETH): Solana’s prominence in this context could further weaken Ethereum’s position, leading to increased selling.
Deutscher noted that the full impact of TRUMP's launch will become clearer in the coming days, especially as Trump himself speaks and outlines his first steps as part of this initiative.
*This is not investment advice.
