- Trump-related meme coins, including the MAGA (TRUMP) coin, have seen a sharp decline, losing over 51% of their value.
- The decline is attributed to speculation about an anticipated “official” Trump token launch on the Solana blockchain.
- The news prompted a swift reaction in the market, with the TRUMP token losing significant value in a matter of hours.
Trump-related meme coins like MAGA (TRUMP) face sharp declines amidst rumors of a new official Trump token on Solana, stirring market turmoil and skepticism within the crypto community.
Significant Decline in Trump-Related Meme Coins
Recent rumors suggest that former President Donald Trump is gearing up to launch a new cryptocurrency, dubbed TrumpCoin, with the ticker DJT, under the guidance of his son, Barron Trump. This speculation, first reported by Pirate Wires, has immediately impacted the value of Trump-related meme coins.
Market Reacts Drastically
Following the announcement, the market reacted almost instantly. The MAGA coin saw its value plummet by over 50%, dropping to $5.65, causing a market cap reduction of more than $150 million. Other Trump-themed meme coins were not spared, with the Solana-based Donald Tremp (TREMP) coin falling by 50%, before recovering slightly to $0.71. Similarly, the Jeo Boden (BODEN) token experienced a decline of over 32%.
Skepticism in the Crypto Community
The ambiguity surrounding the authenticity of these claims has led to considerable skepticism within the crypto community. Mike Solana of Founders Fund and Pirate Wires highlighted the uncertainty by providing a smart contract address linked to the rumored DJT token, which now boasts a market cap of $177 million. Despite the token’s rapid ascent, Solana admitted to not having direct confirmation from Trump, urging caution among investors.
Concerns Over Legitimacy
Prominent voices in the cryptocurrency sphere have raised doubts about the legitimacy of the TrumpCoin. Blockchain analytics firm Bubblemaps flagged the concentration of DJT’s supply, with 67% held in a single cluster and 43% on the Solana-based Raydium market maker, calling the news potentially “fake.” Coinbase director Conor Grogon also expressed skepticism, noting the improbability of the Trump team utilizing platforms like Kucoin where U.S. residents cannot trade.
Conclusion
The rumor of an official Trump token has led to a tumultuous period for Trump-related meme coins, underscoring the market’s vulnerability to speculation and unconfirmed reports. With significant figures in the crypto community expressing doubts and urging caution, the legitimacy of the DJT token remains in question. As the situation continues to evolve, investors will need to tread carefully, armed with thorough information and a critical eye.
