The TRUMP meme coin has plunged 40.88% in the last 24 hours, wiping out much of its earlier gains. Once a popular choice among investors, the token’s steep decline followed Donald Trump’s presidential inauguration, which initially raised hopes of a market boost.
Whale Activity Shakes Confidence
Whale activity has played a major role in the token’s price crash. According to Lookonchain data, two major transactions were recorded, including a sale by a whale named Ansem, who offloaded 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, transferred to an unknown wallet, sparking fears of further sell-offs.
Broader Meme Coin Market Suffers
The sell-off has rippled through the broader meme coin market. Solana-based tokens like MELANIA, BONK, and WIF have suffered substantial losses, with MELANIA down 62.7%, BONK losing 1.7%, and WIF dropping 5.4%. Allegations of a pump-and-dump scheme involving Cuba, which reportedly rug-pulled $158 million, have added to investor concerns.
Despite the downturn, some analysts see potential buying opportunities. Platforms like Coingecko have flagged BONK and WIF as promising investments, with similar sentiment emerging for TRUMP. However, the token’s future depends heavily on investor confidence and possible executive orders from President Trump, who has hinted at crypto-friendly reforms. In the meanwhile, Coinbase listing of TRUMP has also created a buying opportunity for Trump’s coin.
Analysts Warns of Risks
Crypto enthusiast Balaji Srinivasan has cautioned against the risks of investing in tokens like TRUMP. He explained that every buy order for such coins is met with a sell order, leading to price drops. While acknowledging the community-driven success of some meme coins, Srinivasan stressed that the best tokens are those with real-world value.
Joining the fray, Mark Cuban, a Big Crypto Investor has also critized TRUMP memecoin calling it a self-serving project with no real world use.
While John Deaton said he is afraid of Trump’s memecoin love and took a jab at Trump for creating a hype trading scenario with no clear regulations.
While there is a short term rally with Trump’s memecoin launch, the market is looking forward to clear crypto regulations at the earliest. There are many crypto assets which are just waiting for SEC clearance to recover from losses they faced in unfair SEC trials. It will be interesting to see if Trump fullfills all his crypto promises in his first 100 days or not.
