TRUMP Meme Coin Crash: Can Investors Recover from 40% Loss?

The TRUMP meme coin, once a rising star in the crypto space, has taken a dramatic hit, plunging 40.88% in just 24 hours. What seemed like a promising surge, fueled by excitement around Donald Trump’s presidential inauguration, has quickly turned into a steep decline, wiping out much of its earlier gains.

So, what’s behind this sudden crash? Whale sell-offs, market uncertainty, and broader concerns about the future of meme coins could be key factors.

Keep reading to uncover what’s really happening with TRUMP.

Whale Activity Shakes Confidence

A significant factor in the token’s price crash is whale activity. Lookonchain data shows two major transactions that have weighed heavily on the price. One involved a whale named Ansem selling 194,799 TRUMP tokens worth $6.83 million, incurring a $2.55 million loss.

Another transaction saw 1.62 million TRUMP tokens, valued at $67.4 million, moved to an unknown wallet, sparking fears of further sell-offs and deeper losses.

Meme Coin Market Takes a Hit

The sell-off of TRUMP has impacted the wider meme coin market, with Solana-based tokens like MELANIA, BONK, and WIF also suffering significant losses. MELANIA is down 62.7%, BONK has fallen 1.7%, and WIF is down 5.4%. Additionally, rumors of a pump-and-dump scheme involving Cuba, which allegedly rug-pulled $158 million, have further raised concerns among investors.

Despite the downturn, some analysts still see buying opportunities. Platforms like Coingecko have flagged BONK and WIF as promising investments, and a similar outlook is emerging for TRUMP. However, the token’s future depends largely on investor confidence and any potential executive orders from President Trump, who has hinted at crypto-friendly reforms.

The recent listing of TRUMP on Coinbase has also sparked renewed interest, creating potential opportunities for those watching the market closely.

Beware of the Risks!

Not all experts share the same optimism. Balaji Srinivasan has warned of the risks involved in investing in tokens like TRUMP, noting that every buy order is met with a sell order, leading to price declines. While meme coins can succeed with community support, Srinivasan stressed that the most successful tokens are those with real-world value.

Mark Cuban, a well-known crypto investor, has also criticized TRUMP’s meme coin, calling it a “self-serving project with no real-world use.”

John Deaton, a legal expert, expressed concerns about Trump’s approach to crypto, criticizing the lack of clear regulations and calling out the hype-driven nature of the market.

Trump’s Crypto Promises: Will He Deliver?

While the short-term launch of TRUMP’s memecoin sparked some excitement, the market is now eagerly awaiting clearer regulations. Many crypto assets are waiting for SEC clearance to recover from past losses.

It remains to be seen whether Trump will fulfill his promises for crypto reform within his first 100 days, but his actions in the coming months will have a significant impact on both TRUMP’s token and the broader crypto market.