The Trump-themed "MAGA" token has appreciated more than 700% — is it the next hot cryptocurrency trend?
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The Trump-themed “MAGA” token has appreciated more than 700% — is it the next hot cryptocurrency trend?
DOGE coin crypto currency with graph in the background
While most meme cryptocurrency coins in the past have been centered around dog memes, MAGA Coin (TRUMP) is a new take on the subject. With the headline “Make Crypto Great Again,” the token is hoping to garner support from politically motivated crypto enthusiasts. However, as the token becomes more popular, Benzinga takes a closer look at when — or if — the hype will die down.
The token was created in the summer of 2023 and remained relatively stagnant for several months. However, as Trump began to make headlines for continually winning primary elections, the token took off.
In the first week of March, the token appreciated more than 700%, going from less than $1.40 to more than $11.50. The market cap also soared, reaching a peak of nearly $500 million and broke into the top 150 cryptocurrencies by market cap.
As TRUMP climbs higher, many are looking at the resemblance to other meme coins, such as Dogecoin (DOGE) and Shiba Inu (SHIB). Both of these projects started as jokes, but they quickly became some of the most traded assets in the world and amassed market caps in the tens of billions.
At first, the meme projects were just that — memes. They relied heavily on a strong community and HODLers — those who “Hold On for Dear Life” on crypto brokerages — to maintain the high valuations. However, the creators soon realized that the meme coins could be more than just a joke; they could be used to provide real value to the community.
SHIB is a prime example of this. It has built a vast ecosystem of Shiba Inu-related programs, ranging from non-fungible tokens (NFTs) and decentralized exchange (DEX) to a magazine and merchandise. These programs have contributed to SHIB’s success and have allowed it to sustain beyond its initial success as purely a meme.
While MAGA Coin does not have as strong of an ecosystem as the top meme coins, it does seek to appease its investors. This is primarily done through donations to different charities. The donations come as a portion of the total supply. So far, more than 200 ETH worth at least $600,000 has been donated to veterans charities and organizations devoted to preventing child trafficking.
While the token may not have as strong of an ecosystem or community, its approach to attracting new investors is unique. Additionally, as the presidential race heats up, Trump’s name will be mentioned more and more, which could bring about natural marketing.
Though the token is still very much a meme, the creators are working to build it beyond that and into a lasting token. However, that is much easier said than done. Only time will tell whether MAGA Coin can withstand the post-boom phase that has claimed many meme coins in the past.
