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This is going to sound weird, but Trump and crypto have something in common

TL;DR

  • Bitcoin’s booming, Elon Musk’s hyping Dogecoin, and meme stocks are in the spotlight.
  • Trump’s company, Trump Media & Technology Group, saw a massive surge in stock value after merging with a Spac, boosting his net worth by billions overnight.
  • Despite financial critics and a significant loss reported by the company, its market valuation hit a staggering $5.7 billion at one point.

So get this. Bitcoin’s on a tear, Elon Musk is shooting Dogecoin to the stars, and meme stocks are making a grand re-entrance. And let’s not forget the man of the hour – Donald Trump. My boy’s media company is stirring up the stock market like it’s nobody’s business. And zooming out on the numbers and historical data, it had me thinking … Trump and crypto have something in common, hilarious as that might sound.

I’ll explain.

When Stocks and Sentiments Collide

Trump Media & Technology Group.

I’m gonna need you guys to remember that name because it’s been on everyone’s lips since it hit the stock market under “DJT.”

After merging with a Spac, its value went through the roof. Trump, amidst a scramble to settle legal dues, saw his fortunes skyrocket, adding a few billion to his name overnight. Yet, the stock’s wild ride dipped soon after, shedding over a billion in value following dismal earnings reports.

Trump’s locked in for now, with his 60% stake paper-valued at nearly $4 billion. Ha!

Critics and spectators are split on whether this is a stroke of genius or sheer luck on Trump’s part. But I mean… it’s Trump, guys. Come on now. I see experts slamming the stock’s buyers as fools misled by a scam, echoing a sentiment that Trump’s ventures are more con than genuine.

Yet, here’s where it gets particularly interesting.

Trump Media & Technology Group is hemorrhaging money, with losses towering over revenues, but its market valuation is absurdly high, defying logic at 1,400 times its revenue.

I don’t want to talk numbers though. Let’s talk feelings. We all know Trump is a master at stirring those, for better or worse. Since crypto trades on sentiment rather than fundamentals, Trump’s company’s valuation isn’t all that bizarre.

After all, if a stock or a crypto can soar based on collective emotions, who’s to say what’s real or not?

Come on, that was a little funny.

Crypto Adventures

But yeah switching gears to crypto, Trump’s not been sitting idle.

Last year, my boy dipped his toes into the cryptocurrency pool with the launch of Trump Digital Trading Cards, a venture that netted him a tidy sum in Ethereum and Wrapped Ethereum. His crypto escapades didn’t stop there. Enter MAGA Coin, a meme coin that ballooned in value, significantly padding Trump’s crypto portfolio.

This coin, born in the fervor of political loyalty and speculation, morphed into a massive sum for Trump, making up the lion’s share of his $5.3 million crypto stash. MAGA Coin, riding the waves of Trump’s political milestones, became a speculative playground for investors, its value peaking and plummeting with the political tides.

But as we all know, the crypto market is anything but stable. A sharp decline in MAGA Coin’s value dented Trump’s crypto fortune, a painful reminder of the market’s volatility. Despite the paper losses, Trump’s initial investment was zero, making any returns pure profit, though he missed out on cashing in at the peak.

So, what do Trump and crypto have in common? Both are emblematic of today’s unpredictable financial markets, where sentiment often outweighs fundamentals.

I find that very interesting. Don’t you?

NOTE: The data and information in this article were gotten from Financial Times, Benzinga, and Yahoo Finance.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Jai Hamid

Jai Hamid is a passionate writer with a keen interest in blockchain technology, the global economy, and literature. She dedicates most of her time to exploring the transformative potential of crypto and the dynamics of worldwide economic trends.

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