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In typically Trump style, the Jan. 20 presidential inauguration was marked by excitement, concern and outright confusion from the crypto faithful.
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US President Donald Trump’s inaugural address on Jan. 20 didn’t mention cryptocurrency or Bitcoin, but that doesn’t mean there aren’t big things in store for the sector this year. Coinbase CEO Brian Armstrong said the Trump administration will place renewed emphasis on sensible stablecoin regulations. Bank of America CEO Brian Moynihan said financial institutions are eying cryptocurrency payment opportunities under the new regime.
While Trump’s silence on crypto also extended to executive orders and his list of “America First Priorities,” the sector was arguably the week’s biggest news story.
Even before Trump took office, his name was plastered on a new memecoin that reached $15 billion in value in less than 48 hours.
This week’s Crypto Biz explores Trump’s wild first few days in office, recent crypto purchases from World Liberty Financial and a new AI venture that could cement America’s leadership role in artificial intelligence.
TRUMP memecoin hits top 15 in 48 hours
On Jan. 17, Trump’s official memecoin launched on the Solana blockchain, triggering a flurry of activity as traders scrambled to capitalize on the opportunity. In just 48 hours, the TRUMP token became the 15th-largest cryptocurrency in the world.
At its height, TRUMP was valued at more than $73. It has since plunged to below $40.
The launch of TRUMP pushed new Solana addresses to an all-time high, according to Glassnode data tracked by custody platform Copper.co.
For his part, Trump apparently didn’t know much about the project. “I don’t know where it is. I don’t know much about it other than I launched it, other than it was very successful,” Trump said in response to a reporter’s question.
Shortly after the launch of TRUMP, First Lady Melania Trump minted her own memecoin, which attracted about 500,000 users within hours.
Trump-backed World Liberty Financial gobbles up ETH, other cryptos
The Trump-backed crypto venture World Liberty Financial scooped up $48 million worth of Ether (ETH) this week, signaling its intention to be active in the crypto market and, possibly, the Ethereum network. The purchase triggered a spike in Ether’s price and led to a flood of Google searches for the word “Ethereum.”
While World Liberty didn’t disclose the motivation behind its purchase, Trump’s son Eric hinted that big plans are in store. “Wait until you see what they do tomorrow,” Eric Trump wrote on Jan. 20, referring to World Liberty Financial. However, so far, no plans have been announced.
In addition to its ETH purchase, World Liberty also acquired Tron (TRX), Chainlink (LINK), Aave (AAVE) and Ethena (ENA).
The acquisitions are significant because they further cement President Trump’s involvement in the crypto sector. It’s not just about memes, apparently.
Source: Eric Trump
US asset managers file for memecoin ETFs
The Trump memecoin frenzy may have prompted US asset managers Osprey Funds and Rex Shares to submit applications for new crypto exchange-traded funds (ETFs).
According to Jan. 21 filings, the asset managers are seeking approval to launch ETFs for TRUMP, Dogecoin (DOGE) and Boonk (BONK).
Memecoin-based ETFs would have seemed highly unlikely when Gary Gensler headed the US Securities and Exchange Commission (SEC). Now, with Gensler relegated to the “waste bin of Washington,” according to GOP Representative Tom Emmer, asset managers are anticipating a green light from regulators.
Crypto ETFs have become a massive business, led by the resounding success of spot Bitcoin funds. As Bitwise chief investment officer Matt Hougan noted, Bitcoin was the most successful US ETF launch of all time.
Trump launches $500B infrastructure venture
One day after his inauguration, President Trump announced a $500 billion AI infrastructure investment called Stargate, with plans to build artificial intelligence data centers across the United States.
Stargate won’t be funded by government handouts but will instead be led by equity investors OpenAI, SoftBank and Oracle. SoftBank CEO Masayoshi Son said $100 billion would be invested immediately.
For Trump, Stargate could create hundreds of thousands of American jobs while ensuring that the future of AI innovation stays within US borders.
“This project will not only support the re-industrialization of the United States but also provide a strategic capability to protect the national security of America and its allies,” OpenAI said.
Trump singled out China as a major “competitor” in the AI race, which is partly why Stargate was established.
“China is a competitor, others are competitors. We want it to be in this country, and we’re making it available,” Trump said.
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This article first appeared at Cointelegraph.com News
