Coinbase cryptocurrency exchange has announced its decision to list the Donald Trump-themed cryptocurrency, TRUMP, on its platform. The token, which operates on the Solana blockchain, is categorized as an “Experimental” asset and will be available for trading in regions where Coinbase offers support.
This comes in the wake of the company’s decision to include meme coins in its list of offered currencies, even as experts continue to raise questions over the sustainability of such digital assets. To avoid a loss, users have been advised to send TRUMP tokens only through the Solana network.
Coinbase Announces Support For TRUMP Meme Coin
Coinbase has included the TRUMP meme coin, developed on the Solana network, in the “Experimental” asset category. These are often used with assets which have limited trading history or have high levels of price fluctuations.
In the official announcement made by Coinbase, it was stated that deposits, withdrawals, and trading for TRUMP will be available on Coinbase and Coinbase Exchange. However, the exchange admitted that transaction processing for Solana-based assets including TRUMP had been slowed down due to network congestion.
Coinbase has also shared the Solana network contract address for TRUMP token to avoid any suspicion. Users are encouraged to use the following address 6p6xgHyF7AeE6TZkSmFsko444wqoP15icUSqi2jfGiPN for all transactions to avoid loss of funds.
Market Activity and Reactions to TRUMP Token
Since its launch, the TRUMP token has attracted massive trading activity and large value transfers between wallets. According to Whale Alert, a blockchain tracking service, more than 1.6 million TRUMP tokens worth $67.4 million were transferred between two anonymous wallets.
Even though the token has a high trading volume, the market performance has been quite volatile having been listed by both Binance, and Robinhood. TRUMP was in the red by double digits following the introduction of a close competition meme coin called MELANIA. This led to criticism from key personalities in the financial and crypto industries, such as investor Mark Cuban, who doubted the token’s sustainability.
Balaji Srinivasan, a crypto enthusiast, called such tokens as TRUMP meme coins and pointed out the fact that they are very much risky. He said, “Every purchase order in such coins has an answer from a seller and this leads to price drop.” Srinivasan also stressed that the best coins are those with intrinsic value, despite the fact that some meme coins have gained communities.
Concerns Over Meme Coin Sustainability
Meme coins have faced scrutiny for their speculative nature and the potential risks they pose to late investors. The launch of TRUMP and similar tokens has reignited discussions about their long-term sustainability in the market especially with Donald Trump failing to mention crypto as top priority as he took office.
Skeptics have claimed that many meme coins rely on marketing and hype to draw investors, but such tokens may lack substantive use cases and sustainable value.
Edward Dowd, the founder of Phinance Technologies, called the TRUMP market drop a mistake that could have been avoided and questioned its sustainability. The recent swings in the prices of TRUMP and MELANIA have only compounded these fears, with more people urging retail investors to be more careful.
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