The popularity of $TRUMP, which quickly outshone World Liberty Financial (WLFI) and is now listed on major exchanges such as Binance, OKX and Coinbase, can be attributed to strategic planning and market alignment, according to Forward Labs (FWX), a blockchain fintech startup.
The cryptocurrency $TRUMP is a meme coin, inspired by US President Donald Trump. Meme coins are popular because of social media buzz, viral marketing and community-driven support, rather than any intrinsic utility or technical features.
WLFI is a cryptocurrency project launched by Trump on Oct 15, 2024, marking the first time a US presidential candidate introduced a crypto asset directly tied to a political campaign.
According to Chanon Jaratsuttikul, co-founder and chief executive of Forward Labs, $TRUMP's popularity in the crypto market is driven by its fundraising approach, which aligns with global market trends.
By utilising the Solana chain, designing effective tokenomics, and promoting via key platforms such as Dexscreener, the project rapidly reached a large audience, he said.
The primary investors in $TRUMP, mostly from the "Degen" community, are adept at trading high-risk assets, said Mr Chanon.
They actively seek out new meme coins with growth potential and are familiar with market dynamics.
The launch and marketing of $TRUMP resonated with this community, contributing to its rapid popularity, he said.
The Degen community is an active cryptocurrency-focused group centred around the $DEGEN token, primarily associated with the Farcaster social platform, said Mr Chanon.
For investors unfamiliar with Web3 (a new iteration of the web focused on decentralisation and blockchain technologies), he said purchasing $TRUMP can be challenging. It requires decentralised wallets on the Solana network, such as Phantom Wallet or Solflare, and using Raydium DEX to swap SOL for $TRUMP.
This is a different process compared with centralised platforms such as Binance or Coinbase, said Mr Chanon.
Despite the complexity, $TRUMP's popularity has spurred Web2 users to transition to Web3.
New investors are signing up for Phantom Wallets, purchasing Solana (SOL), and using it to trade for $TRUMP on Raydium, part of a swift migration to Web3, he said.
Mr Chanon said Trump's crypto launch before his inauguration could either be a fleeting trend or the beginning of a new market shift, bridging Web2 and Web3 investors.
"What is clear is $TRUMP has made a notable impact on the crypto industry and could serve as a case study for future political meme coins," he said.