Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Bernstein says some may cringe, but Trump memecoin is a 'paradigm shift' in US crypto approach

Bernstein says some may cringe, but Trump memecoin is a 'paradigm shift' in US crypto approach

The BlockThe Block2025/01/20 12:12
By:James Hunt

Analysts at Bernstein said that Donald Trump’s official launch of a memecoin represents a “paradigm shift” in how the U.S. and the world will approach crypto.The incoming President’s team launched the TRUMP token late Friday on the Solana blockchain, and at one point, it had a fully diluted valuation of more than $73 billion.

Bernstein says some may cringe, but Trump memecoin is a 'paradigm shift' in US crypto approach image 0

According to analysts at Bernstein, the launch of a memecoin by the biggest political figure in the world is a “massive paradigm shift” in how the U.S. and the rest of the world will approach crypto.

Ahead of his inauguration as the 47th President of the United States later today, Donald Trump’s team launched the TRUMP memecoin on the Solana blockchain late Friday, with a frenzy of trading activity subsequently lifting the token to a fully diluted valuation of more than $73 billion at one point over the weekend as Solana witnessed $50 billion in trading volume.

The under 48-hour surge was enough for Trump’s token to surpass the world’s largest memecoin, DOGE, by fully diluted valuation, rising into the top 20 cryptocurrencies by market cap. That was until the launch of returning First Lady Melania Trump’s own memecoin saw a 50% correction for TRUMP before later rebounding .

“It signifies a new regulatory era, where governments see crypto as a technology to reach out to the masses directly,” the Bernstein analysts, led by Gautam Chhugani, wrote in a note to clients on Monday. “Thus, potentially leading to certain politicians leaning towards favorable crypto policy — we have seen this in the U.S., Argentina and even in Canada, where the right-wing political side has leaned in favor of bitcoin/crypto.”

Trump’s memecoin: The good, the bad and the ugly

While some in the industry believe the move took away the regulatory risk in launching tokens in the U.S. — a signal that freedom and innovation are back for U.S. builders — there are also strong critics, the analysts noted.

“Given the previous U.S regulatory regime was about crackdown on crypto builders and enforcement actions on token-related activities, a token launch by the President, is a huge social signal to U.S builders,” they said. “Build away in the U.S, and don’t be shy of launching tokens — a new crypto regulatory era is here.”

However, not everyone was so excited by the prospect as early reactions came in. “The Trump memecoin stuff is bad for the industry,” SkyBridge Capital Founder Anthony Scaramucci said . “Don’t delude yourself. It’s Idi Amin level corruption.”

“I don’t like it,” Bloomberg ETF analyst Eric Balchunas said . “I get its probably being done to add to the enthusiasm for the dawn of a new era but it seems exploitative. Unforced error in the making IMO.”

Another concern is the lofty 80% of the TRUMP token supply that is held by wallets associated with CIC Digital — the Trump-affliated entity linked to the previous launch of Trump-branded NFTs, sneakers and mugs as part of the election campaign — leading to concerns over insider selling. However, these tokens are subject to a vesting period of up to three years, according to the project’s website.

The Bernstein analysts suggested that the Trump family’s anecdotes of de-banking following his 2020 election loss explained their affinity for the crypto industry, as well as its utility for fundraising. “Crypto tech allows politicians to go directly to the audience to crowd fund their election campaign and garner support,” Chhugani said. “With obscure animal branded meme coins reaching billions in market cap, it is not surprising that a coin built on Trump’s social capital could reach billions too and attract several new traders (more than 400K new holders by the meme token buying platform called Moonshot).”

The analysts acknowledged that given the asset’s substantial surge in price, the 80% held by insiders does put pressure on its market value, suggesting the market will be looking for further information on the team’s plans over the coming days. It could be used as collateral to build something useful in crypto banking and finance, an engagement model to reward supporters or a treasury asset to fund more Trump-related political initiatives, the analysts argued.

While memecoins often come and go as attention wanes, capitalizing on Trump’s brand and politics has “potential longevity,” Chhugani said, depending on the team’s plans going forward to make it less extractive — as evidenced by the negative reaction to further dilution of the brand amid the MELANIA memecoin launch.

“Whichever way you see it, we think a new chaotic crypto era is here,” Chhugani added. “The President of America has his own coin. Our view would be to view the event as a signal that a new crypto regulatory era is here to stay and invest in the more valuable parts of the ecosystem. But some may still cringe — it is what it is.”

Gautam Chhugani maintains long positions in various cryptocurrencies.


4

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

French AI start-up Mistral seeks funding at $10B valuation to compete with U.S., Chinese rivals

Share link:In this post: Mistral has announced its plan to raise $1B at a $10B valuation, up from €5.8B. The company’s revenue is on track to go beyond $100M annually. The raised funds may support its planned €8.5B data center project.

Cryptopolitan2025/08/03 00:45

Florida leads U.S. solar boom with 3GW surge, beating California

Share link:In this post: Florida added over 3GW of utility-scale solar in one year, surpassing California. Florida Power & Light built more than 70% of the state’s new solar capacity. Trump’s new law cuts solar tax credits, hurting homeowners and developers.

Cryptopolitan2025/08/03 00:45

Arthur Hayes calls BTC at $100K, ETH at $3K after dumping $10M+ crypto

Share link:In this post: Arthur Hayes sold over $13 million in crypto, including ETH, ENA, and PEPE, within hours. He predicts Bitcoin will “test” $100K and Ethereum will dip to $3K due to macroeconomic pressures. The BitMEX founder cites weak U.S. job data and the upcoming tariff bill as key bearish indicators.

Cryptopolitan2025/08/03 00:45
Arthur Hayes calls BTC at $100K, ETH at $3K after dumping $10M+ crypto

Anthropic restricts Claude API access for OpenAI

Share link:In this post: Anthropic cut OpenAI’s API access after discovering it was using Claude in violation of terms, allegedly to benchmark and fine-tune GPT-5 through unauthorized custom API integration. Anthropic will introduce weekly usage caps for Claude Code starting August 28, affecting all paid tiers, to reduce excessive background usage. High demand for Claude Code has strained Anthropic’s systems, causing multiple service outages in the past month.

Cryptopolitan2025/08/03 00:45
Anthropic restricts Claude API access for OpenAI