Trump Memecoin Stumbles Amid President’s Casual Dismissal

Donald Trump’s self-named memecoin, TRUMP, has faced a sharp decline, losing 44% of its value since its peak high of $73.43 on January 19. The token, which initially soared past a $70 billion valuation, has now dropped to $41.6, according to CoinGecko. The sell-off was exacerbated by Trump’s casual comments during a press conference on January 21, where he admitted to knowing little about the cryptocurrency despite its association with his name.

“I don’t know where it is. I don’t know much about it other than I launched it, other than it was very successful,” Trump remarked when questioned about the token. The president’s indifferent attitude, combined with the acknowledgment that he hasn’t tracked its performance, appeared to shake investor confidence.

Adding further intrigue, Trump jokingly downplayed the token’s multi-billion-dollar valuation, calling it “peanuts” while sharing the stage with prominent tech leaders, including OpenAI’s Sam Altman and SoftBank’s Masayoshi Son.

A Rocky Path for TRUMP Memecoin

TRUMP memecoin surprise launch on January 18 initially electrified the cryptocurrency space, catapulting the memecoin to an all-time high within 24 hours. However, the excitement quickly turned to skepticism as analysts and market participants questioned Trump’s involvement in the project.

Bloomberg ETF analyst James Seyffart bluntly observed, “Trump just nuked his own memecoin,” referencing the president’s dismissive remarks. Meanwhile, The Kobeissi Letter noted Trump’s apparent lack of direct involvement in TRUMP’s development and promotion.

Further complicating matters, First Lady Melania Trump introduced her own namesake memecoin, which diluted the spotlight on TRUMP memecoin. Crypto enthusiasts, already wary of the memecoin’s speculative nature, were quick to predict its decline following the inauguration and subsequent hype cycle.

TRUMP’s tokenomics also raised eyebrows. With 200 million coins currently in circulation and a planned supply increase to 1 billion over three years, concerns over inflationary pressure have contributed to its downward trajectory.

Investors Question the Future

Despite the initial buzz, the future of TRUMP memecoin seems uncertain. Critics argue that Trump’s apparent detachment from the project undermines its credibility, while others highlight the volatility and inherent risks of memecoins.

According to Arkham Intelligence, one of Trump’s wallets is heavily invested in other memecoins, including a $3.1 million holding of a token called TROG. Whether TRUMP can recover or fade into obscurity remains to be seen, but for now, it seems the former president’s casual dismissal has dealt his namesake token a significant blow.