DJT Meme Coin Surges Amid Unsubstantiated Trump Rumors

A recent surge in trading activity and a significant price spike have been observed in a month-old DJT meme coin on the Solana blockchain. This flurry of activity was triggered by Crypto Twitter’s reaction to unsubstantiated rumors that former U.S. president Donald Trump is planning to launch an official token by the same name.

The rumor was initially spread by The Pirate Wires’ Twitter account and was tagged as “fake news” in a community note, although this label has since been removed. Mike Solana, Editor-in-Chief at The Pirate Wires and CMO at venture capital firm Founders Fund—though he is not affiliated with the Solana network—stated that he did not speak directly with Trump and was merely relaying information from sources. The rumor was further fueled by suggestions that Trump’s youngest son, Barron, would be leading the token project, adding to the speculative frenzy.

As a result, the DJT token, which had been relatively obscure among many tokens invoking Trump’s name, experienced a dramatic increase in visibility and trading volume. According to GeckoTerminal, since its launch on April 21, the token saw a remarkable trading volume of over $129 million from more than 26,000 transactions within just 24 hours, around the time the rumor peaked on June 1.

The price of DJT has shown extreme volatility, doubling to $0.015 per token and briefly spiking to $0.37. Despite this surge, the token, with a market cap of $155 million, remains a niche player in the cryptocurrency market. It is likely to experience the typical flash-and-crash cycle common among celebrity-associated meme coins.

Trump’s association with the cryptocurrency market has consistently garnered attention, from the sale of his official NFTs to tokens inspired by his political persona, such as MAGA. Furthermore, Trump’s recent claim at a San Francisco fundraiser that he would be a “crypto president” has intensified discussions about the role of cryptocurrency in the upcoming U.S. presidential election. Concurrently, current president Joe Biden is reportedly gearing up to participate in a Bitcoin roundtable next month, signaling a growing political interest in cryptocurrency.

While the DJT meme coin’s sudden rise exemplifies the volatile nature of cryptocurrency markets influenced by celebrity endorsements and political figures, it also highlights the broader implications of crypto in political campaigns. As the U.S. presidential election approaches, the intersection of politics and cryptocurrency is expected to receive increasing scrutiny and possibly influence campaign strategies and voter engagement.