TRUMP Disappointment: Investors Face Heavy Losses Despite Trump’s Endorsement
Donald Trump’s TRUMP token has fallen further over the past day due to the market-wide decline. At its peak, losses reached a staggering 75%. TRUMP was released just a few days prior to Trump’s inauguration on January 20th, making it the first memecoin to be formally backed by an incumbent president. Less than 48 hours after being live, its market capitalization soared from zero to $14 billion. However, CoinDesk research revealed that the majority of retail traders lost money on the coin.
However, the meme coin has been declining ever since. In fact, it has dropped 13.63% in the past day alone, further shattering investor hype. On his social media platform, Truth Social, Trump nevertheless continues to support the token, posting over the weekend that “I LOVE $TRUMP!!” along with a link to purchase it.
Trump’s Trade Policies Trigger Crypto Market Crash: Meme Coin Risks in a Bearish Market
The market’s reaction, meanwhile, was less uninspiring than expected. The price of the TRUMP token dropped to $19.09 on Sunday morning, the lowest since Trump’s return to the White House and below the $40 figure at which it was listed on the majority of major exchanges. This serves as a sobering reminder of the volatility of celebrity-backed meme tokens, where even well-known endorsements might backfire when confronted with more general market trends and economic policies.
However, TRUMP’s collapse is not without reason. Rather, it was part of a larger market downturn brought on by Trump’s declaration of new trade restrictions against Canada and Mexico. In fact, while giants XRP and DOGE are down more than 25% in a sharp decline that has erased all of December and January’s gains, Bitcoin has fallen 6% in the last day.
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