Sameera Casmod | sameerac@radioislam.co.za
23 January 2025 | 13:16 CAT
2-minute read

In a strategic move, President Trump and his wife, Melania, launched a pair of meme coins just days ahead of his return to the White House. Trump’s launch of the cryptocurrency initially rocked the markets, with $Trump’s price surging from $7 when introduced on January 17, to a peak of $75 by January 19, achieving a market capitalisation of approximately $15 billion. Following the absence of specific cryptocurrency policies during his inauguration, the value of the Trump coin declined by about 50%, stabilising around $37,85 by January 21 and currently trading at approximately $0.75.

Senior market analyst Farah Mourad says these fluctuations highlight the inherent volatility of meme coins and underscore the importance of cautious investment.

“Meme coins are risky, they’re flashy, they’re unpredictable,” Mourad says. “The market reacted the way that we would expect it to react to a very flashy meme coin. We saw this huge momentum, huge spikes, then… a 50% correction. So, for investors, I would tell them it’s still a clear gamble.”

Critics argues the move appears to be a blatant cash grab that could harm efforts to legitimise digital assets. The crypto sector, which felt unjustly targeted by the Biden administration and heavily supported Trump’s campaign, is hoping the new president will advocate for integrating crypto into mainstream financial systems. Trump has pledged to ease regulations and has appointed pro-crypto officials to key government roles.

However, Mourad describes the launch as a calculated move to bolster his brand rather than a genuine effort to engage with the cryptocurrency market. The volatile nature of meme coins aligns with Trump’s flair for the dramatic.

Trump’s recent tariffs on Canadian and Mexican imports has the potential to reshape trade dynamics, Mourad noted.

Canada, as a major oil supplier to the US, could see slowed growth and further pressure on its currency. Similarly, Mexico’s peso remains vulnerable due to its heavy reliance on US trade.

Domestically, US sectors like oil could benefit, as these tariffs aim to make American products more competitive. Mourad highlighted gold as another beneficiary of the unpredictability triggered by tariffs. However, she warned of potential retaliatory measures from Canada and Mexico, which could further unsettle markets.

Trump’s proposed sanctions on Russian oil, alongside policies to expand US energy production, reflect his clear objective to dominate the global oil market. By lowering the global supply of oil from competitors like Russia, Trump seeks to boost domestic production without drastically lowering prices, Mourad explained. Initiatives like opening federal lands for drilling and reversing offshore drilling bans align with this strategy.

While some analysts speculate oil prices could hit $100 per barrel, Mourad predicts a more moderate recovery. “The sanctions on Russia is to lower the supply and to have this balance between production and prices,” she remarked.

Listen to the Asia-Pacific Report on Sabaahul Muslim with Moulana Sulaimaan Ravat.