Donald Trump drew plenty of criticism by launching his own branded memecoin three days before his inauguration, including from the crypto community which argued he was making a mockery of the crypto world by tying himself to the memecoin world, which could damage efforts to make crypto reforms. And so, in the two-plus weeks since he has taken office, the value of the Trump coin has dropped precipitously.
Trump’s $TRUMP coin, which can be used to buy his Trump-themed sneakers, watches, and fragrances, had lost another 6% of its value Tuesday afternoon, falling to $16.63 each. While that still gives the token a market cap of $3.3 billion, it’s nothing compared to where it stood on January 19.
On the eve of his second term, Trump’s memecoin hit an all-time high of $75.35 per token and a market cap of $14.5 billion. Chainalysis data, as reported by Reuters, found that 29 large buyers each held more than $10 million-worth of the memecoins, with five holding more than $100 million each. The recent drop represents a loss of more than 75% of its value.
A separate memecoin launched by Melania Trump, has suffered similar losses, falling from $13.73 per token on January 20 to $1.60 on Tuesday, an 88% plunge. The $MELANIA loss would have been even larger if it hadn’t been in rally mode Tuesday, gaining nearly 17% from 24 hours prior. (As with many memecoins, it’s unclear what’s driving the rally.)
The sell-off of $TRUMP has been gaining momentum largely since he finished taking the oath of office. By the end of January 21, the coin had lost nearly half its value, falling to little more than $40. The recent declines have come amid Trump’s tariff threats and growing fears of a trade war. The memecoin was down another 15% Monday as the deadline for the tariffs loomed and last-minute deals were struck.
The loss of gains is not restricted to $TRUMP. Most cryptocurrencies have surrendered any gains they’ve made since the first of the year, though Bitcoin is still up slightly. That’s due, in part, to ongoing threats to free trade, a position that many crypto owners support.
The risk of higher prices on imported goods has also prompted investors to sell digital assets in order to lower risk and steer clear of volatility in their portfolios. Memecoins have been especially affected by the sell-off. Selling holdings like memecoins can also give owners access to cash, which could be handy if costs go up across the board.
Tariffs aimed at goods from Mexico and China were suspended for at least 30 days Tuesday, but a 10% tariff on goods from China was enacted. China retaliated Tuesday, implementing a 15% tariff on coal and liquefied natural gas products from the U.S. and a 10% tariff on U.S. crude oil, agricultural machinery, and large-engine cars. Officials in Beijing also announced an anti-trust investigation into Google and enacted export controls on critical components of high-tech products.
While the value of the Trump memecoin has taken a significant dive in the past two weeks, that hasn’t stopped some parties from making a considerable amount of money from it. Reuters, on Monday, reported that trading fees alone for the $TRUMP token have added up to somewhere between $86 million and $100 million.
One of the parties benefiting from those trade fees, CIC Digital, is an affiliate of the Trump Organization, but it was unclear how much of that total, if any, had gone to Trump personally. The ownership of other entities involved in trade fees could similarly not be determined.
Trump was elected on a vow to be the “crypto president” and has filled his administration with several people who either hold crypto or have ties to the industry. Treasury Secretary Scott Bessent, for instance, who has previously expressed a belief that digital assets are a form of financial freedom, was named Monday as acting director of the Consumer Financial Protection Bureau (CFPB), which has previously set rules to protect consumers against fraud in crypto transactions.
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