Jr Korpa | Unsplash
Solana definitely got it right with the launch of Pump.fun; a platform where it is possible to trade trending memecoins. If we look at it from a financial point of view, a large volume of trades was directed towards this sector, allowing several memecoins to reach such a large market capitalization that positions them on major cryptocurrency data sites.
Recall that memecoins are based on speculation, which suggests that we should be partly cautious when trading, due to the fact that the volatility of these coins can be excessively explosive, which is the reason why large gains can be interpreted, as well as total losses.
Something that I have seen a lot when researching these types of platforms is that many of the coins that are created are intended for their investors to fall into a rugpull. This means that there is a user who acquires a large percentage of the total coins in circulation, in many cases more than 60%, so that after the trend does its thing, many investors will have continued the upward direction of its price, until the one who leads the ranking of maintenance, decides to sell his funds and take the profits.
Apparently this pattern occurs very frequently, so one understands that it is the ideal place to perform these operations, although it is not the right thing to do. Another mechanic I have seen, is that some big size investors look for forgotten memecoins and bring them back to life, obviously with the same purposes; that of generating a big rugpull.
But there are also isolated cases, where a memecoin can grow within its means. These are usually backed by their community, through support on social networks, spreading a certain euphoria for something exclusive, unique and that will make a difference. Trends can be interpreted as the ideal moment to be part of something incredible, and in many cases one can read when a user regrets not having arrived in time after such an explosion in popularity and prices.
Official Trump (TRUMP) | CoinGecko
What is said on social media can affect these tokens that then become trending. This can happen through the personal branding of people who are considered to be totally influential, even in political positions. For this reason is that one of the coins that have seen an increase in price was the official token of President Donald Trump (TRUMP), which after a publication in TruthSocial, it managed to reach and exceed $12.25 dollars, rising 7.7% in a single day. It appears not to have seen as explosive an increase as another time, when it marked an all-time high of $73.4. However, no one would mind small but big gains in the short term.
However, the way in which a president makes use of his image and status to promote a crypto-asset is beginning to be questioned. This questionable point of view can come to have several items that imply a grievance to the ethical, or at least calls it into question.
According to Andrew Rossow, digital media lawyer and CEO of AR Media, he argues that there are three constitutional concerns, which could affect Trump's figure if taken into account. Although at the moment there does not appear to be a body that has ruled on the matter and moved against him.
In the second round of token sales, World Liberty Financial, a strategic financial venture associated with the principals of DT Marks DEFI LLC and the Trump family, raised an incredible $390 million. This suggests that campaign promises remain an important part of this currency's performance, with Bitcoin's strategic reserve and the end of the federal reserve's independence high on the list of priorities.
While in pump.fun we can find several trending tokens linked to the political sphere, we will also find others that are really striking, although they are mostly based on the events that happen in social networks, which are very curious, such as the ROUTINE token.
It is a video that had not been very successful at the time and which was based on the facial cleansing process of a man who took his care routine very seriously. It wasn't until TipsForMens played it on X that it regained its popularity. Apparently, the audience found the video funny, mostly because of the seriousness of the person behind the routine of washing his face with ice water and wiping it with a banana peel, which became a meme, and therefore a memecoin with great capacity for growth.
Morning Routine (Routine) on pump.fun
Morning Routine (Routine) has reached a market capitalization of $19 million dollars, with a drop to $8 million dollars, and then recovered to $15 million dollars, an increase of 87.8%. Some explosion has also been seen in another token called Saratoga Spring Water (Saragota), which has managed to reach a market cap of $3 million. This token is also part of the same viral video, which has greatly benefited the perception of meme coins, after some time being in the low zone.
- Main image edited in Canva.
- I have consulted information at decrypt.co: I and II.
- Translated from Spanish to English with DeepL.
Posted Using INLEO
A lot of people invested on trump and if this price for token goes up hope it's profitable for those