- Donald Trump’s meme coin, TRUMP, dropped 16% to $40.29 following his comments but rebounded to $43.37 within hours.
- Melania Trump’s competing meme coin launch caused TRUMP to lose 50% of its value amid significant sell-offs.
Donald Trump’s meme coin took center stage in the crypto world on Tuesday, experiencing dramatic volatility after the president made statements downplaying his involvement.
The Official Trump (TRUMP) meme coin, valued at $8 billion, saw a rollercoaster ride when Trump remarked, “I don’t know much about it other than I launched it. I heard it was very successful. I haven’t checked,” during a tech executive meeting.
Initially climbing to a 24-hour high of $48.18, TRUMP dropped 16% to $40.29 following his comments, before recovering to $43.37. This recovery boosted the token’s market cap to $8.7 billion and its fully diluted valuation to $43.6 billion, reflecting the total potential market value if all tokens were in circulation.
Trump’s dismissal of the token’s valuation as “peanuts” compared to tech investments came as he addressed executives from SoftBank, OpenAI, and Oracle. Despite his apparent indifference, major platforms like Coinbase and Robinhood continue to list the token, reinforcing its status as a significant player in the meme coin space.
The TRUMP token has faced challenges beyond Trump’s remarks. First Lady Melania Trump launched her own competing meme coin on Sunday, sparking a massive sell-off that halved TRUMP’s value. On-chain analysis from Bubblemaps revealed concentrated token supplies among issuers, and one anonymous trader reportedly turned $1 million into $116 million through perfectly timed trades.
Adding to the turmoil, TD Cowen’s Washington Research Group cautioned that the presidential meme coins might derail bipartisan crypto legislation. With growing concerns over potential insider trading, advancing the crypto bill with bipartisan support now faces increased challenges.
Despite the chaos, the TRUMP token retains a multibillion-dollar market cap, underlining its resilience in the volatile crypto ecosystem.
Edited by Harshajit Sarmah
