As Trump’s own meme coin $TRUMP reached a peak market capitalization of $14.54 billion within just two days, it showcased the astonishing potential of meme coins. Gold bull Peter Schiff also mocked this phenomenon, suggesting that why not include the token in personal retirement account reserves or emulate MicroStrategy’s strategy to leverage the Trump Group.
(Gold advocate Peter Schiff: Bitcoin is America’s number one enemy, with the government bribing people to waste money)
Schiff: $TRUMP qualifies as digital gold
In a matter of days, the meme coin $TRUMP has caused a market sensation, quickly becoming the focus of the cryptocurrency world. Since last Friday, the price of $TRUMP has surged by 40,000%.
In response, Peter Schiff, chairman of the precious metals dealer SchiffGold, humorously remarked: “It took Bitcoin 8 years to reach this market cap, while $TRUMP achieved this feat in just two days.” The market capitalization of $TRUMP is now 50% higher than that of the world’s largest gold producer, Newmont (NEM). Clearly, it offers more value storage functionality than Bitcoin, making it the new “digital gold.”
(Next cryptocurrency president? What can Trump’s meme coin $TRUMP revolution bring?)
$TRUMP as a strategic reserve?
At the same time, Schiff jokingly suggested that to further elevate the global status of $TRUMP, it could be considered for inclusion in national-level strategic reserves:
“We should establish a strategic reserve and mandate that all Individual Retirement Accounts (IRAs) allocate 10% to $TRUMP, while imposing a 100% tariff on any country that does not allocate 10% of its foreign exchange reserves to $TRUMP.”
(The rise of digital gold: Can Bitcoin replace gold as a national reserve or a tool for de-dollarization?)
Why not emulate MicroStrategy’s “21/21 plan”?
Schiff went further to jest that the Trump Group and Trump Media and Technology Group (TMTG) could emulate MicroStrategy’s Bitcoin flywheel strategy by adding $TRUMP to the company’s balance sheet:
This way, TMTG could issue convertible bonds and sell stock using its own cash, utilizing the raised funds to purchase more $TRUMP, thereby driving up the price. He added, “This virtuous cycle could even allow Trump’s net worth to surpass Musk’s.”
However, in reality, this “price growth driving capital inflow” model is a high-risk financial leverage operation, which can quickly collapse due to shaken market confidence. While this may be feasible for Bitcoin, employing this strategy with a meme coin could jeopardize the company’s financial stability and lead to legal risks.
(A beginner’s guide to MicroStrategy: The transformation from business intelligence (BI) to a Bitcoin empire)
Even though $TRUMP’s rapid rise has made it a major speculative tool in the crypto market, its future stability and long-term value will depend on whether it can successfully integrate into more practical application scenarios and gain broader support. As its global influence grows, whether $TRUMP can continue to survive will require time to validate.
Risk Warning
Investing in cryptocurrencies carries a high level of risk, and their prices can be highly volatile. You may lose all your principal. Please assess the risks carefully.