Trump's tweets boosted crypto markets — now he's back

Donald Trump has made a notable return to X (formerly Twitter), with his influence on financial markets once again under the spotlight. Known for his impactful tweets, Trump has previously shifted the market capitalisation of major companies and stirred significant reactions in the cryptocurrency market. His endorsement of the Trump Digital Trading Cards NFT collection in December 2022 led to a surge in its value, although the current resale prices are significantly lower.

Trump's reappearance on X was marked by a widely-viewed tweet featuring his Fulton County mugshot, which garnered 313 million impressions. Despite his long hiatus, Trump's influence on social media remains formidable, especially in the crypto space, where various unauthorised Trump-themed tokens and meme coins have emerged on multiple blockchains. However, these tokens often lack official endorsement and can be risky for traders.

The Digital World Acquisition Corp. (DWAC) Case

A prime example of Trump's influence is the case of Digital World Acquisition Corp. (DWAC), a publicly-traded crypto company that saw its stock price soar following Trump's announcement of his new social media platform, Truth Social. The company's shares skyrocketed from around $10 to $175, before eventually dropping below $25 after a rebranding. The SEC later charged DWAC insiders with fraud, although Trump himself was not charged.

Musk and Trump’s X Interview

Elon Musk attempted to interview Trump on X to mark his return, but the event was marred by technical issues, including a platform crash that Musk attributed to a "massive distributed denial of service attack." Despite these challenges, the interview eventually attracted 1.3 million listeners, although Trump did not discuss cryptocurrency, focusing instead on other political topics.

Trump’s re-engagement on X and the continuing creation of unauthorised crypto assets linked to his name underscore his enduring influence in both the political and financial arenas, even as he navigates a complex landscape of legal and political challenges.