Donald Trump’s cryptocurrency, $Trump, has taken a hard hit, wiping out more than $12 billion in value in just one month. The coin, launched on January 17, just days before Trump’s inauguration, quickly skyrocketed in value, but has since plummeted by more than 80% from its peak on January 19.
At its peak, the meme coin was worth $15 billion, but by Thursday its value had plummeted to just $2.7 billion, following a broader downturn in the cryptocurrency market. Even Bitcoin has seen a 20% drop since hitting an all-time high on Trump’s inauguration day.
Trump’s personal crypto fortune shrinks
Trump himself has suffered a significant loss in his cryptocurrency holdings, and his paper fortune has been reduced by $50 billion. Unlike regular investors who bought at high prices, Trump has not actually sold any of his coins, so his losses are not assured.
However, many of his supporters who invested in Trump as a symbol of loyalty or as a bet on his future growth now face real losses. As enthusiasm fades and the market cools, the coin’s initial hype has turned to regret for many backers.
It’s not just Trump’s crypto suffering. A meme coin backed by former first lady Melania Trump has performed even worse, falling 94% since January 20.
Criticism grows as lawmakers push for regulation
Trump has touted himself as America’s first “crypto president,” and has even named venture capitalist David Sacks as his “crypto czar” in the White House. But many investors are frustrated, saying the administration has failed to take real steps, such as establishing a Bitcoin federal reserve, something some had hoped it would do.
Now, Democrats in Congress are looking to crack down on political figures who launch their own cryptocurrencies. Congressman Sam Liccardo has introduced the Modern Emoluments and Embezzlement Enforcement (Meme) Act, which would prohibit top government officials and their families from creating or promoting meme coins.
Liccardo warned that the Trump family’s involvement in cryptocurrencies raises serious ethical concerns, such as financial exploitation, insider trading, and foreign influence on American leadership. If passed, this law would apply to the president, vice president, members of Congress and White House officials, as well as their family members.
The Rise and Fall of Meme Coins
The collapse of $Trump highlights the risky nature of meme coins, which often attract buyers through social media advertising rather than their real-world value. Unlike Bitcoin or Ethereum, which have long-term financial potential, meme coins are mostly speculative bets or symbolic tokens linked to celebrities, influencers or political figures.
In recent months, many influencers and public figures have launched their own digital currencies, only to see their values ​​plummet after an initial spike. Trump’s cryptocurrency crash serves as yet another warning in the volatile world of digital currencies.
Also read: Think Twice Before Investing in Dogecoin or $TRUMP: Smarter Alternatives to Consider