Trump’s Truth Social Post Causes 12% Spike in Memecoin Price
Donald Trump’s recent post on Truth Social reignited interest in the TRUMP memecoin, causing its price to surge by 12% in just a few minutes. He referred to it as the ‘greatest’ and ‘cool,’ triggering a new wave of speculation.
TRUMP: A Political and Speculative Asset
The TRUMP, launched in January 2025, has become a hybrid asset combining political strategy and speculation. Its usage by Trump has raised concerns among lawmakers, including Representative Sam Liccardo, who wishes to regulate such assets through the MEME Act.
A Sudden Surge Orchestrated on Truth Social
A few words on Truth Social were enough to ignite speculative fervor. By branding the token bearing his name as the ‘greatest of all’ and ‘cool,’ Donald Trump caused the price of TRUMP to skyrocket by 12% in a matter of minutes. The cryptocurrency, trading around $10.93 before his message, peaked at $12.25 before stabilizing.
TRUMP: An Asset as Political as It Is Speculative
Launched in January 2025, TRUMP has already experienced a trajectory as explosive as it is volatile. Endorsed openly by the president himself, the memecoin briefly flirted with billion-dollar valuations before plummeting 75% during a market storm. Curiously, the president has communicated very little about his token so far, despite the approaching unlock phases…
In the hands of a head of state preparing for re-election, this token has become a political tool disguised as a financial product. The close proximity between the public sphere and private interests alarms a section of Congress. Democratic Representative Sam Liccardo has introduced a proposed law nicknamed the MEME Act, to prohibit federal officials – as well as their families – from profiting from memecoins. In a blog post, he explicitly accuses the Trump family of abusing their position to manipulate markets in their favor.
SEC Powerless in the Face of Regulatory Void
The Securities and Exchange Commission’s position is clear: memecoins are not financial securities and therefore fall outside its regulatory purview. This legal ambiguity fuels tensions, leaving the door open for political figures like Trump to operate on the border between financial ethics and political showmanship.
Representative Liccardo goes even further, calling for restrictions to be extended to other assets, including shares of Truth Social. He cites the risk of insider trading, as well as the potential for foreign interference through the massive acquisition of tokens linked to major political figures.
A New Era for Digital Assets?
The TRUMP memecoin is not just another memecoin. It embodies a deeper mutation in the crypto landscape: one where political influence becomes a market force in itself. This precedent, if left unregulated, could pave the way for similar initiatives, blurring the line between electoral marketing and financial manipulation in favor of virality.
In this gray area, neither the SEC nor Congress seem to have the adequate tools at the moment. But one thing is certain: as long as Trump tweets, the markets will respond.
