Earlier this month, former President Donald Trump launched his very own meme coin on the Solana blockchain. However, what began as a high-flying experiment in celebrity-backed crypto is now showing signs of serious strain, with trading volumes falling and investors shouldering over $11 million in trading fees.
In the past 24 hours alone, CoinMarketCap data revealed that the coin achieved a trading volume of $2.07 billion. Yet, its market capitalization has nosedived to just under $5 billion—down sharply from an initial valuation of $14 billion. Since its debut on January 17, the token has lost more than 60% of its value, triggering alarms for many retail investors.
Retail Investors Hit Hard
Blockchain analytics firm Chainalysis noted that most buyers in this market are new retail investors. In fact, nearly half of the token holders set up their wallets on the same day they made their purchase. The analysis further highlights that over 77% of these investors have realized less than $100 in profits, while a small group of approximately 36 whale investors have already pocketed over $10 million each from the token’s trading activity.
Celebrity Coins and Insider Concerns
Tyler Tarsi, co-founder of Omni Network, compared the Trump meme coin to other celebrity-driven tokens like those endorsed by Iggy Azalea. “$Trump was the fastest coin ever to reach a $50 billion valuation—then skyrocketed to $65 billion overnight, which is, frankly, total insanity,” Tarsi remarked. However, he urged caution, pointing out that insiders hold a staggering 80% of the coin’s supply—a level significantly higher than the typical sub-50% seen in other crypto projects. Tarsi warned that such a concentration of holdings could allow insiders to dump tokens on unsuspecting investors. Indeed, on-chain data indicates that insiders have already offloaded approximately $500 million within just one day of trading.
Mixed Outlook on Long-Term Viability
According to Fern Bamber, Content Manager at Casinos Blockchain, the coin’s politically charged branding, lack of practical utility, and extreme volatility cast doubts on its long-term prospects. “As with all meme coins, the real test will be whether $Trump can sustain its momentum or simply fade into obscurity like many others before it,” Bamber stated.
Despite these concerns, the coin has found a niche market among supporters who see potential for its use in Trump-related transactions. Recently, Trump’s network of official merchandise vendors started accepting the Solana-based token, enabling purchases of Trump-themed watches, fragrances, and sneakers.
Current Status
At the time of writing, the Trump meme coin is trading at approximately $24.89 per token, as reported by CoinMarketCap. While the coin’s future remains uncertain, its dramatic rise and fall serve as a stark reminder of the volatile nature of meme coins in the crypto space.
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