The possibility of Solana (SOL) reaching $200 is being discussed in light of the meme coin craze and the release of $TRUMP by former President Donald Trump. While these developments have garnered significant attention, the rapid growth and the political elements involved are presenting new opportunities for investors while also carrying ethical and legal risks. Therefore, investors need to be aware of market volatility and make cautious decisions.
On January 17, 2025, President Donald Trump officially launched the Solana-based meme coin, $TRUMP. The token saw an explosive response, surpassing a market capitalization of $27 billion within a single day of its release. Out of the total supply of 1 billion tokens, 200 million were distributed through an initial coin offering (ICO), while the remaining 800 million are held by CIC Digital LLC and Fight Fight Fight LLC, companies owned by Trump. This structure has raised concerns over potential conflicts of interest between his presidential duties and personal gains.
The sharp rise of $TRUMP has led to an increase in trading volume on the Solana blockchain. Notably, the meme coin creation platform, Pump.fun, has seen a surge in Trump-themed meme coins, achieving a record-breaking trading volume of $3.3 billion within just a week.
Pump.fun, launched in January 2024, allows users to easily create and trade meme coins on the Solana blockchain. Since its launch, the platform has facilitated the creation of over 6 million meme coins, becoming a central hub in the meme coin ecosystem.
Following the release of $TRUMP, Pump.fun has seen a wave of other Trump-related meme coins being created, such as ‘Barron Trump,’ ‘Melania,’ and ‘MAGA,’ drawing considerable investor interest. However, this rapid expansion has led to significant losses for some investors, and legal concerns have been raised regarding the platform's revenue model.
The launch of $TRUMP has sparked ethical criticism regarding the use of political power for personal profit, especially raising concerns about "political favoritism." Even some Republican lawmakers have expressed their concerns.
Additionally, after an initial sharp rise, the subsequent sharp decline in $TRUMP’s value has resulted in significant losses for investors, highlighting the volatility and risks associated with meme coins.
While the increase in trading volume due to the meme coin frenzy and the launch of $TRUMP has had an impact on market prices, the highly volatile market environment requires cautious investor approaches. The likelihood of Solana (SOL) reaching $200 seems unlikely.
