TRUMP Meme Coin Crashes 40% as Whale Sell-Off Sparks Fear
The Trump meme coin plunged 40.88% in the past 24 hours, erasing most of its previous gains. The coin, once a popular choice among investors, fell sharply following the inauguration of President Donald Trump, which initially sparked hopes of a market boost.
Whale activity shakes people’s confidence
Whale activity played a significant role in the token’s price collapse. Lookonchain data shows that two major transactions were recorded, including a whale named Ansem selling 194,799 TRUMP tokens worth $6.83 million, resulting in a loss of $2.55 million.
In another transaction, 1.62 million TRUMP tokens worth $67.4 million were transferred to an unknown wallet, raising concerns about further selling.
Wider meme coin market affected
The sell-off rippled through the broader meme coin market. Solana-based tokens such as MELANIA, BONK and WIF suffered significant losses, with MELANIA down 62.7%, BONK down 1.7%, and WIF down 5.4%. Allegations of a pump-and-dump scheme in Cuba, which allegedly defrauded investors of $158 million, have heightened investor concerns.
Despite the economic downturn, some analysts see potential buying opportunities. Platforms like Coingecko have flagged BONK and WIF as promising investments, and Trump has echoed similar sentiments. However, the future of the coin largely depends on investor confidence and possible executive orders from President Trump, who has hinted at crypto-friendly reforms. At the same time, the listing of Trump Coin on Coinbase also created buying opportunities for Trump Coin.
Analysts warn of risks
Cryptocurrency enthusiast Balaji Srinivasan has warned that investing in coins like TRUMP is risky. He explained that every buy order for such a coin is met with a sell order, causing the price to fall. While acknowledging the community-driven success of some meme coins, Srinivasan emphasized that the best coins are those with real-world value.
Big cryptocurrency investor Mark Cuban has also joined the fray, criticizing the Trump memecoin, calling it a self-serving project that has no real-world use.
John Deaton said he was worried about Trump’s love for meme coins and criticized Trump for creating a hype trading scene without clear regulation.
Although Trump’s launch of meme coins will bring about a short-term rebound, the market is looking forward to early clarity on cryptocurrency regulations. There are many crypto assets that are waiting for SEC approval to recover from the losses they faced in unfair SEC trials. It will be interesting to see if Trump will deliver on all of his cryptocurrency promises within his first 100 days in office.
