Rapid rise and fall: Trump memecoin drops 33% in a week
TRUMP token experiences rapid rise to $14B before losing two-thirds of its value.
Former President Donald Trump’s foray into cryptocurrency with the launch of his meme coin, $TRUMP, has sparked controversy, with major investors reaping massive gains while thousands of small traders incur significant losses.
The token, which experienced a rapid rise before its dramatic fall, is now under intense scrutiny.
Rapid Rise and Sudden Decline
Launched on January 17, the $TRUMP token initially soared to a market valuation of more than $14 billion by January 19, just before Trump’s inauguration. However, the rally proved short-lived as the token lost approximately two-thirds of its value, trading intraday as low as $17 compared to its debut high of $74. Data from CoinMarketCap indicates that in the past 24 hours alone, $TRUMP recorded over $2 billion in trading volume, while overall the token is down 8% on the day and 33% over the week.
Blockchain analysis firms Merkle Science and Chainalysis reported that the trading fees generated from $TRUMP transactions have reached between $86 million and $100 million by January 30. Notably, the primary beneficiaries appear to be entities behind the token, including CIC Digital, a company owned by Trump, with at least 50 of the largest $TRUMP holders walking away with over $10 million each. Conversely, approximately 200,000 crypto wallets—mostly belonging to small-scale traders—suffered losses on the platform where the token was initially sold.
Criticism and Future Outlook
Industry observers have raised concerns over Trump’s apparent lack of involvement or deep understanding of $TRUMP’s mechanics, arguing that his engagement in this project undermines earlier promises to foster regulatory clarity in the crypto space. Some critics warn that such actions could set a dangerous precedent for political figures leveraging their influence for personal financial gain, while others view it as an inevitable evolution of digital assets.
As market watchers continue to debate the long-term implications of $TRUMP, the focus remains on whether the token can regain stability and whether Trump’s political legacy will ultimately shape broader crypto adoption. Investors will be closely monitoring trading volumes and market sentiment for signs of a rebound or further decline in the volatile meme coin market.
Recently we wrote, that the global cryptocurrency market has suffered a major shock after President Donald Trump's new duties sent shockwaves through the market.
