In the past 24 hours, the TRUMP meme coin has sharply fallen by 40.88%, erasing much of its previous gains. Initially popular among investors following Donald Trump's presidential inauguration, the token raised hopes of a market boost.
Whale Activity Shakes Confidence
Whale activity has been a major factor in the token’s price crash. According to Lookonchain data, two significant transactions were recorded. One involved a whale named Ansem, who sold 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: MELANIA down by 62.7%, BONK losing 1.7%, and WIF dropping by 5.4%. Allegations of a pump-and-dump scheme involving Cuba, reportedly rug-pulling $158 million, have added to investor concerns.
Analysts Warn 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. Mark Cuban, a major crypto investor, has also criticized the TRUMP meme coin, calling it a project with no real-world use. Meanwhile, John Deaton expressed his fears about Trump’s enthusiasm for meme coins, questioning the lack of clear regulations. The market is eagerly awaiting Trump's fulfillment of his crypto promises in his first 100 days.
While the launch of the TRUMP meme coin led to a short-term rally, the market is looking forward to clear crypto regulations. Many crypto assets are waiting for SEC clearance to recover from losses faced in unfair trials.
