Donald Trump’s TRUMP token has experienced a significant setback, dropping 75% from its peak in just 24 hours, as the broader cryptocurrency market faces a downturn. The token, which was released just days before Trump’s swearing-in ceremony on January 20, initially made waves by becoming the first-ever meme coin officially endorsed by a sitting president.
In its early days, TRUMP saw meteoric success, reaching a market cap of $14 billion within 48 hours of launching. However, despite its strong start, retail traders were left with significant losses, as CoinDesk analysis revealed. The high-profile endorsement by Trump on his social media platform, Truth Social, where he posted “I LOVE $TRUMP!!” over the weekend, failed to ignite the expected market enthusiasm.
As of Sunday morning, TRUMP’s value had plummeted to $19.09, a dramatic drop from its peak and below its original listing price of around $40 on major exchanges. This sharp decline has raised concerns about the sustainability of celebrity-backed meme tokens and the potential for volatility when broader market conditions are unfavorable.
The drop in TRUMP’s value coincides with a wider market slump, triggered by Trump’s recent announcement of new trade tariffs against Canada and Mexico. The news sent shockwaves through the market, causing Bitcoin (BTC) to fall by 6% in the past 24 hours. Major cryptocurrencies such as XRP and Dogecoin (DOGE) also suffered heavy losses, with declines of over 25%, reversing the gains made in December and January.
Also Read: Is Trump’s Tariff War Behind XRP’s 33% Drop to $1.95? Crypto Market Reacts to Global Tensions
The TRUMP token’s fall highlights the inherent risks associated with celebrity-backed cryptocurrencies, where price fluctuations are often influenced by factors beyond just hype and endorsements. As the market continues to react to broader economic policies, it remains to be seen whether the TRUMP token will recover or continue its downward spiral.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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