Over the weekend, two occasions occurred concurrently: the closure of TikTok within the USA, and the launch of Donald Trump’s official crypto.
The 2 issues occurred one after the opposite, and this temporal coincidence might recommend the concept that they is perhaps in some way related.
In reality, a few connections could be made, however there are additionally clues that go in the wrong way.
The closure of TikTok within the USA and the attainable relationship with Trump’s crypto
As had already been broadly anticipated, yesterday (Sunday, January 19, 2025) TikTok closed all its operations within the USA.
The closure, nevertheless, lasted little or no, as a result of already within the night the well-known Chinese language social community reopened in the USA because of an settlement with Trump.
It must be remembered that Donald Trump takes workplace as President of the USA solely at the moment, whereas yesterday the sitting President was nonetheless Joe Biden.
The closure of TikTok within the USA yesterday was an arbitrary determination by the Chinese language firm.
All the things, nevertheless, begins from a call by Biden many months in the past that ordered the Chinese language firm to promote its actions within the USA to an American entity. The deadline set was exactly January 19, the day earlier than the inauguration of the brand new President.
If Kamala Harris had gained the November elections, maybe an settlement with TikTok wouldn’t have been reached, whereas with Trump it appears an settlement has been reached, even when solely momentary.
Though there’s nonetheless nothing official, the speculation circulating is that Trump has granted TikTok 90 days to promote a minimum of 50% of its actions within the USA to an American entity. In principle, all this could change into official between at the moment and tomorrow.
The problem due to this fact shouldn’t be but closed.
The launch of Trump’s crypto shortly earlier than the closure of TikTok within the USA
Saturday night, earlier than TikTok started suspending its service within the USA, Donald Trump publicly introduced the launch of his official memecoin, TRUMP.
The information has made headlines all over the world, and it has clearly overshadowed the closure of TikTok, additionally because of the very fact that there have been already leaked hypotheses a couple of 90-day postponement of the difficulty.
One should not overlook that TikTok is a really well-known and broadly used social community, particularly by Technology Z, the one in every of youngsters. These days, in numerous elements of the world, TikTok has been used to conduct mass political propaganda, primarily in favor of the best, which is the political facet to which Donald Trump additionally belongs.
The 2 occasions occurred so shut to one another that the suspicion that they is perhaps in some way related is there.
Then again, since Trump introduced his DeFi challenge many months in the past, and gained the elections two and a half months in the past, why wait till the final second?
The explanations for the launch of TRUMP
In actuality, there can be two causes that might justify the launch of the memecoin TRUMP proper throughout the weekend that simply ended.
The primary, quite simple, is that they needed to benefit from the expectations for Trump’s inauguration on the White Home, which is able to happen at the moment.
In reality, yesterday the memecoin of Trump’s spouse, MELANIA, was additionally launched, in all probability to strike whereas the iron is sizzling.
The second purpose is that the USA Structure prohibits the sitting president from exploiting their inevitable recognition to do enterprise, so yesterday was the final good day for Trump to advertise an initiative just like the launch of his personal memecoin.
In mild of this data, it’s comprehensible why they determined to launch these memecoins earlier than Trump’s inauguration, however this doesn’t clarify why they waited so lengthy.
The development of the value of TRUMP
On the time of the launch on the crypto markets, the value of Trump’s official memecoin was about $7.
Within the span of some hours, it had already risen above $30, and in simply over 24 hours, it additionally rose above $70.
All this occurred simply because the information of the closure of TikTok within the USA was spreading, at a time when it was not but identified that TikTok would reopen shortly.
As a substitute, only a few hours after reopening, there was a small drop within the value of TRUMP.
Be aware that the utmost value peak was reached simply above $75, a couple of dozen hours after the value had surpassed $70 for the primary time. As quickly as the utmost peak was reached, there was a drop to under $40, adopted by a small rebound above $50.
The present value continues to be enormously greater than the preliminary launch value, and additionally it is greater than the primary peak recorded above $30. Nonetheless, it’s already at -28% from the highs.
Though it’s certainly not sure that different speculative bubbles can not inflate on this token, within the brief time period the majority of the rise appears to have been made.