31 May, 2024

Trump's Legal Battles Shake Meme Coins, But Crypto Donations Might Save the Day

Meme coins are notoriously volatile, rising and falling with market sentiment. On Thursday, Trump-themed coins plummeted after former U.S. President Donald Trump was convicted on 34 felony charges. The largest of these coins, MAGA (ticker: TRUMP), experienced a dramatic 25% drop, sinking from $15 to $11.27 shortly after the verdict was announced, before slightly rebounding to $12.37. Other Trump coins, including MAGA Hat (MAGA), Super Trump (STRUMP), and MAGA VP (MVP), saw similar declines of 16% and 22%, respectively.Conversely, not all Trump-themed tokens followed this downward trajectory. Doland Tremp (TREMP), a deliberately misspelled Trump tribute coin, maintained its value, oscillating as traders speculated on the Solana-based token. This market volatility coincides with Trump's conviction for falsifying business records to conceal an affair with adult entertainer Stormy Daniels, making him the first U.S. president to be convicted of a felony.The political repercussions of Trump's legal battles also affected traditional markets. Shares of Trump Media & Technology Group (DJT) dropped 9% in after-hours trading. Meanwhile, Joe Biden-inspired meme coins surged, with Jeo Boden (BODEN) rising 12% after the verdict.Trump Embraces Cryptocurrency Donations for Presidential CampaignIn a bid to secure a second term, former President Donald Trump is now accepting cryptocurrency donations through his official campaign website, powered by Coinbase. This move marks the first time a major party presidential nominee has fully embraced cryptocurrency donations, expanding beyond common cryptocurrencies like Bitcoin and Ethereum to include meme coins such as Shiba Inu and XRP.Trump's pivot towards digital assets is noteworthy, especially given his past criticism of Bitcoin as a "scam." During a recent event for holders of his NFT project at Mar-a-Lago, Trump expressed his newfound support for cryptocurrency, attributing the U.S. crypto industry's struggles to regulatory hostility. He assured attendees of his intent to create a more favorable environment for crypto if re-elected.Trump's pro-crypto stance is reflected in the market's reaction. Analysts suggest that his advocacy may influence regulatory bodies, such as the U.S. Securities and Exchange Commission (SEC), to adopt a more crypto-friendly approach.Trump-Themed Cryptocurrencies Defy Market TrendsDespite his recent legal troubles, Trump-themed cryptocurrencies have demonstrated resilience. After an initial drop following the news of his conviction, the largest Trump coin, MAGA, quickly rebounded, gaining 6% over the past 24 hours and 71% over the week. This resurgence is largely attributed to Trump's pro-cryptocurrency rhetoric, which has improved market optimism.Trump's cryptocurrency portfolio has also seen substantial growth, with a 141% increase to $12.8 million, according to Arkham Intelligence. MAGA remains the most significant holding in his digital asset portfolio. Meanwhile, a new Solana-based meme coin, Innocent Trump (INOTRUMP), launched today with a significant liquidity lock, is poised for substantial gains following its imminent listing on KuCoin.Regulatory Developments and Market DynamicsThe legislative landscape for cryptocurrency in the U.S. is evolving. The House of Representatives recently passed the Financial Innovation and Technology for the 21st Century Act, aiming to establish a clear legal framework for cryptocurrencies. This legislative push, coupled with the SEC's approval of spot Ethereum ETFs, shows the growing institutional acceptance of digital assets.The approval of Ethereum ETFs, in particular, is expected to drive substantial market growth, similar to the surge seen with Bitcoin ETF approvals earlier this year. Analysts foresee Ethereum's price reaching new heights, bolstered by increased institutional investment and market liquidity.

27 May, 2024

Inflation in Laos to Remain High All Year Long, Bank of Laos Says

Inflation will remain high through the end of 2024, making it impossible to reduce the inflation rate to a single-digit figure within this year, according to Bounleua Sinxayvoravong, the governor of the Bank of Laos (BOL).The governor spoke at a BOL brainstorming session on 22 May in Vientiane Capital, on strategies to address the country’s persistent high inflation. The focus of the discussion was to identify the root causes of inflation in both global and domestic markets and to explore potential solutions to mitigate its impact.The country’s inflation rate peaked at 41.26 percent in February 2023. Although there has been a declining trend since then, the inflation rate remains in double digits, standing at 24.92 percent in April this year.Various factors contribute to this inflationary pressure, including unstable prices of fuel, gas, and imported goods. The depreciation of the national currency, the Lao kip, against the Thai baht and the US dollar, further complicates the situation by making it difficult to maintain low prices for imported goods.To tackle the issue, Bounluea emphasized the importance of raising public awareness about the causes of inflation and the measures being taken by the government to address it. He urged participants to ensure that the public has a broader understanding of the situation and the strategies being implemented to mitigate the effects of inflation.Back in 2023, BOL once set a goal of reducing the inflation rate to nine percent. Efforts included bolstering the enforcement of monetary policy, channeling export income into the banking system, and harmonizing currency exchange rates with market mechanisms. However, despite all the plans set in stone, the goal of going under 10 percent has never come to fruition.Despite promises, including Lao President Thongloun Sisoulith’s pledge to guide the economy towards greater independence and local ownership to enhance resilience, Laos’ economy still shows no sign of significant development. The country’s heavy reliance on imports for domestic consumption adds to the challenges.The World Bank, in its latest report launched last month, noted that increased food production and switching to cheaper food options are common strategies for coping with food inflation. However, after a prolonged period of high inflation, more households are resorting to additional work or borrowing from financial institutions to make ends meet.As Laos continues to grapple with high inflation, the collaborative efforts of the BOL, commercial banks, international organizations, and relevant offices will be crucial in devising effective solutions to stabilize the economy and alleviate the financial burden on the population.