The TRUMP meme coin, once a rising star in the crypto space, took a dramatic hit, plunging 40.88% in just 24 hours. What appeared to be a promising rise, fueled by enthusiasm over Donald Trump’s presidential inauguration, quickly turned into a sharp decline, erasing much of its earlier gains.
So, what is behind this sudden accident? Whale sales, market uncertainty and broader concerns about the future of meme coins could be key factors.
Keep reading to find out what’s really going on with TRUMP.
Whale activity shakes confidence
Whale activity is a significant factor in the token’s price drop. Lookonchain data shows two major transactions that weighed heavily on the price. One of them involved a whale named Ansem who sold 194,799 TRUMP tokens worth $6.83 million, resulting in a loss of $2.55 million.
Another transaction saw 1.62 million TRUMP tokens, worth $67.4 million, transferred to an unknown wallet, sparking fears of further sales and greater losses.
Coin Market Takes a Hit
The TRUMP selloff impacted the broader meme coin market, with Solana-based tokens like MELANIA, BONK, and WIF also suffering significant losses. MELANIA is down 62.7%, BONK 1.7% and WIF 5.4%. Additionally, rumors of a pumping and dumping scheme involving Cuba, which reportedly grossed $158 million, further increased investors’ concerns.
Despite the economic slowdown, some analysts still see buying opportunities. Platforms like Coingecko have flagged BONK and WIF as promising investments, and similar prospects are emerging for TRUMP. However, the future of the token largely depends on investor confidence and any possible executive orders from President Trump, who has hinted at crypto-friendly reforms.
TRUMP’s recent listing on Coinbase has also sparked renewed interest, creating potential opportunities for those closely monitoring the market.
Beware of the risks!
Not all experts share the same optimism. Balaji Srinivasan warned of the risks of investing in tokens like TRUMP, noting that every buy order is followed by a sell order, leading to a drop in prices. Although meme coins can succeed with community support, Srinivasan emphasized that the most successful tokens are those that have real value.
Mark Cuban, a well-known crypto investor, also criticized TRUMP’s meme coin, calling it a “self-serving project with no real-world use.”
John Deaton, a legal expert, has expressed concerns about Trump’s approach to crypto, criticizing the lack of clear regulation and calling out the hype-driven nature of the market.
Trump’s Crypto Promises: Will He Keep His Promises?
Although there was some excitement over the short-term launch of TRUMP’s memecoin, the market is now looking forward to clearer regulation. Many crypto assets are awaiting SEC clearance to recover from past losses.
It remains to be seen whether Trump will deliver on his crypto reform promises in his first 100 days, but his actions over the next few months will have a significant impact on both TRUMP’s token and the broader crypto market. cryptography.