Coinspeaker
Donald Trump’s $TRUMP Coin Crashes, Wiping Out $12 Billion
Donald Trump’s meme coin,
TRUMP
$12.96
24h volatility:
0.3%
Market cap:
$2.59 B
Vol. 24h:
$960.01 M
, launched on January 17 and hit a $15 billion market cap by his inauguration. Now, just weeks later, it has crashed to $2.48 billion, wiping out $12 billion in investor money.
The drop comes as the entire crypto market struggles. Bitcoin
BTC
$88 648
24h volatility:
0.3%
Market cap:
$1.76 T
Vol. 24h:
$40.08 B
is down 20% since Trump took office, and Ethereum
ETH
$2 194
24h volatility:
0.9%
Market cap:
$264.72 B
Vol. 24h:
$17.50 B
just hit a 16-month low.
Trump had labeled $TRUMP an “artwork” in fine print–something often seen with risky meme coins. Now, investors are watching their money disappear as the coin keeps sinking.
Investor Expectations and Disappointment
Many investors jumped into $TRUMP before the inauguration, expecting the new administration to embrace crypto and create a bitcoin reserve. But with no real action from Trump so far, analysts believe the disappointment is driving prices down.
Kathleen Brooks from XTB noted that crypto’s value rose on the hope that Trump would make it an important part of his economic policy. Instead, his lack of statements on the issue has left investors uneasy, causing many to pull out.
Trade Tensions and Cyberattacks Add to the Struggles
On March 2nd, Trump attempted to boost the market by confirming plans for a strategic crypto reserve. Prices briefly spiked but quickly dropped again as excitement wore off.
Analysts are also linking the drop in crypto prices to escalating trade tensions. Trump confirmed on Tuesday that tariffs on Mexico, Canada, and China would soon be implemented, adding fuel to the fire.
Susannah Streeter from Hargreaves Lansdown explained that Trump’s hardline trade stance has prompted investors to retreat from riskier assets, including crypto. Plus, the massive $1.5 billion hack at the Bybit exchange in Dubai has further dampened sentiment.
The FBI has blamed North Korea for the attack, deepening concerns about the security of digital assets. With no clear pro-crypto moves from Trump, experts say the market’s nervousness is unlikely to ease anytime soon.
$TRUMP as Artwork
On $TRUMP’s website, it’s stated that the coin is an “artwork” that’s meant to represent support for Trump’s ideals and not intended as an investment.
Labeling the coin as artwork likely serves a legal purpose. By doing so, Trump can avoid potential legal challenges and sidestep strict regulations that apply to cryptocurrencies deemed as securities. This move redefines the coin as a collectible or creative expression rather than an investment opportunity.
Donald Trump’s $TRUMP Coin Crashes, Wiping Out $12 Billion
