Trump Media announce fintech launch with $250 million Bitcoin and crypto investment, TRUMP meme coin plunges
- President Donald Trump's media team announced its plans to launch Truth.Fi, a new financial services platform.
- The company's board approved a $250 million investment in several assets, including Bitcoin, ETFs and other cryptocurrencies.
- Meme coins related to Donald Trump, DJT and TRUMP are both down despite the announcement.
Meme coins related to United States (US) President Donald Trump DJT and TRUMP declined on Wednesday despite the Trump Media board's plans to launch a new financial services platform, Truth.Fi.
Trump Media unveils new fintech platform to expand into crypto investment
President Donald Trump's media company, Trump Media and Technology Group (TMTG), announced its plan to expand into the financial services sector via the launch of Truth.Fi, its new fintech platform.
The company aims to diversify its investments by allocating up to $250 million toward financial assets, including Bitcoin and other cryptocurrencies, exchange-traded funds (ETFs) and separately managed accounts (SMAs).
Trump's Media interest in acquiring more Bitcoin and diving into decentralized finance (DeFi) marks another push in President Trump's quest for a crypto-friendly United States.
"We began by creating a free-speech social media platform, added an ultra-fast TV streaming service, and now we're moving into investment products and decentralized finance," said TMTG CEO and Chairman Devin Nunes.
The news sparked a rise in the company's stock DJT, shooting over 15%.
However, meme coins related to President Trump, TRUMP and DJT, failed to rise, joining the crypto market in its decline.
TRUMP, the official token launched by President Trump, is down 8%, with its weekly losses stretching over 30%. The token, launched almost two weeks ago, has now shed over $9 billion from its market cap since its peak price of $73 on January 19.
The Trump family is also behind the DeFi platform World Liberty Financial. The platform currently holds $394 million worth of cryptocurrencies, including ETH, WBTC, STETH, USDC, USDT and Tron (TRX).
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addition to
