Crypto Boom Cools Under Trump: A 35% Drop in New Tokens Raises Questions
📷 Image source: assets.finbold.com
The Crypto Gold Rush Hits a Speed Bump
Trump's Second Term Sees Sharp Decline in New Coin Launches
Remember the wild west days of 2020, when it seemed like a new cryptocurrency was born every minute? That frenzy has cooled—hard. According to Finbold data, the daily creation of new cryptocurrencies plummeted by 35% during Donald Trump’s second tenure as president. From meme coins to ambitious blockchain projects, the faucet of innovation didn’t just slow; it got clogged.
Numbers don’t lie: Pre-2020, the crypto space averaged over 1,000 new tokens daily. By mid-2021, that figure had dropped to around 650. Was it regulatory pressure? Market fatigue? Or something deeper in the political undercurrents? The trend raises eyebrows, especially since Trump himself famously called Bitcoin 'a scam'—though he later softened his tone, calling it 'an asset competing with the dollar.'
The Regulatory Shadow
How Washington’s Crackdown Chilled the Crypto Hustle
Let’s not sugarcoat it: The SEC under Trump’s appointees wasn’t exactly a cheerleader for crypto. While the agency didn’t outright ban new tokens, its aggressive stance on ICOs (initial coin offerings) and unregistered securities sent shockwaves through the industry. Remember the Telegram TON debacle? The SEC shut down its $1.7 billion ICO in 2020, setting a precedent that made developers think twice.
Then there’s the IRS. Under Trump, tax enforcement on crypto transactions tightened, with Form 1040 explicitly asking taxpayers about their digital asset dealings. For casual creators and investors alike, the message was clear: The free ride was over. 'The fear of getting sued or audited killed a lot of passion projects,' says crypto analyst Maria Lopez. 'People realized they couldn’t just slap a white paper together and call it a day.'
The Market’s Role: Fatigue or Natural Selection?
Not All Coins Were Created Equal—Many Just Vanished
Here’s the dirty secret of the crypto boom: Most new tokens were garbage. Pump-and-dump schemes, rug pulls, and outright scams littered the landscape. By 2021, the market started self-correcting. Investors grew wary, and liquidity dried up for all but the most credible projects. Ethereum’s dominance as a platform for new tokens also played a role—gas fees skyrocketed, making it expensive to launch anything without serious backing.
Data from CoinGecko shows that over 70% of tokens launched in 2019 were effectively dead by 2021. 'The drop in new coins isn’t just about regulation,' argues developer Raj Patel. 'It’s Darwinism. The market got smarter.' Still, the timing with Trump’s tenure is hard to ignore. Whether by design or accident, his administration’s policies accelerated the shakeout.
What’s Next? A More Mature Crypto Landscape
Fewer Tokens, But Maybe Better Ones
The decline in daily token creation isn’t necessarily a bad thing. In fact, some argue it’s a sign of maturity. The crypto space is no longer a playground for get-rich-quick schemes but a battleground for serious innovation. Projects like Solana, Polkadot, and Cardano didn’t just survive the downturn—they thrived, proving that quality trumps quantity.
Still, the political question lingers: Would a Biden or future administration reverse the trend? With the SEC’s Gary Gensler taking an even harder line on crypto, don’t bet on it. The era of the wild west might be over for good. And whether that’s a victory or a loss depends on who you ask.
#Cryptocurrency #Bitcoin #SEC #Blockchain #Trump #MarketTrends
