Donald Trump’s rapid leap into cryptocurrency, widely referred to as “Trump Coin,” has triggered a wave of global attention a day into his presidency.

Proponents see it as an audacious move toward financial innovation. At the same time, detractors argue it is a publicity gambit powered by the same outsized persona that once propelled him to reality television fame. Yet, despite the headlines, there is an uneasy truth beneath the surface. Multiple studies indicate that nearly 97% of memecoins fail, many collapsing within a year compared to three years for most other crypto projects. More than 2000 memecoins disappear each month, undone by low trading volumes, dormant development, or outright scams.

A memecoin is a way to monetise social networks. It has no intrinsic value beyond the hype. When trying to decode Trump’s decisions, we often imagine standing in his shoes, seeking logic in what can appear chaotic. The reality, though, might be more straightforward and even more startling. Promoting a memecoin can be highly profitable. That can seem either shallow or ingenious, depending on the observer’s perspective.

There may be no grand vision behind it beyond generating interest and revenue, with Trump believed to have already pocked "a few billion." At the same time, these high-profile ventures lend legitimacy to the wider crypto ecosystem, offering another pillar of support for a sector once seen as a niche interest. Think of it like the surprise heir to a throne. It may be unexpected, but it still has a claim and a future that should not be dismissed.

Trump Coin does have a distinct advantage. It is backed by instant recognition and formidable social capital. A single announcement can capture the attention of millions of potential buyers. Yet history suggests that novelty and brand power alone rarely guarantee longevity. Many memecoins begin with a bang, only to fade away once the headlines cool. Without genuine use cases or strong backing, they often land in the ever-growing cryptographic graveyard.

Meanwhile, a subtle but significant shift is underway in Middle Eastern financial circles. Some of the region’s most influential sovereign wealth funds, including the UAE’s Mubadala Investment Company and Saudi Arabia’s Public Investment Fund, have begun to explore blockchain ventures. Such moves signal that major institutions across the Gulf are open to new frontiers in finance, adding a layer of credibility to digital assets. While memecoins can be short-lived, the broader crypto and blockchain sector is maturing, drawing attention from heavyweight investors interested in both diversification and innovation.

For ordinary people in inflation-stricken economies, cryptocurrencies can offer a fragile yet meaningful lifeline. In Iran, for example, an academic who asked to remain unnamed described how she converted part of her savings into digital tokens to escape the downward spiral of the local currency, the Iranian rial (IRR). It was a risky move, but she found it provided a measure of stability that traditional banking options could not match. Her experience demonstrates that crypto can be far more than just speculative hype for some communities, offering tangible solutions when conventional systems falter. With mounting national debt in the US, and perceived fears of a possible default of the entire dollar-based economy, more US citizens too could become instant fans of crypto to shore up their assets. 

The fate of Trump Coin may hinge on how seriously the new administration is willing to engage with policy and oversight in the fintech space. If coherent guidelines for compliance, consumer protection, and real-world application are introduced, Trump Coin might outlast the short life span that spells doom for so many memecoins. If it is merely another market spectacle, however, the odds are stacked against it.

Investors and onlookers alike would do well to remember that hype and rationality rarely thrive in the same space. Memecoins can burn brightly for a moment, powered by big personalities and viral excitement, but most vanish almost as swiftly as they appear. True stability in this market is grounded in practical value, measured risk, and an awareness that when the frenzy is at its peak, sober judgment is often in short supply.

Miad Kasravi is a market strategist and clear-thinking trader, providing actionable insights and disciplined strategies for navigating today’s financial markets at Speculators Trading.