After an initial surge post-launch, the Trump meme coin faced a steep decline, raising questions and criticism from financial analysts and investors.
Launch and Decline of Trump Meme Coin
The Official Trump meme coin reached its all-time high of $75.35 on January 19, 2025, shortly after its launch on January 17. However, since then, its value has significantly dropped. As of February 1, the token is trading at approximately $19.38, which is nearly a 74% drop from its peak. The coin's market capitalization remains substantial, with a fully diluted valuation of around $2 billion, with 80% of the tokens held by Trump Organization affiliates.
Scaramucci's Reaction and Criticism
SkyBridge Capital founder Anthony Scaramucci, a former ally turned critic of Trump, has called out the president for what he describes as a 'pump and dump' scheme. Scaramucci commented on platform X, stating that Trump's recent post on Truth Social aimed to 'pump' his meme coin, but instead accelerated its decline. 'President Trump posted on Truth Social to pump his meme coin, causing it to dump even further,' he reported. Anthony also posed a question to his followers: 'Could someone please explain how the President pumping his own meme coin is a good thing?'
Implications and Wall Street Opinions
Beyond Anthony Scaramucci, Trump's meme coin is drawing interest among other financial professionals. According to Financial Times, the hedge fund Elliott Management has expressed concern that Trump's support for digital coins may fuel speculative frenzy. Despite this, Elliott's founder Paul Singer, a crypto critic, had previously donated substantial amounts to Trump-supportive campaigns. This aligns with Trump's administration's broader strategy to promote cryptocurrencies, including an executive order to establish a national digital currency reserve.
The launch and subsequent decline of the Trump meme coin spark discussions and diverse opinions, highlighting the risks and opportunities of the cryptocurrency market and its intersection with political figures.
