Donald Trump cryptocurrency: Meme coin hype fizzles as Donald Trump cashes in; crypto fans left wondering if the pump was just another political payday
What began with much fanfare in mid-January quickly turned into a cautionary tale for investors. According to Axios, since the Trump Organization launched these meme coins on January 17 and January 18, the revenue for leading meme-coin platform Pump.fun has been plummeting, leaving many crypto enthusiasts wondering if this was all just another political cash grab.
The rise and fall of Trump coins
While meme coins have long been part of the crypto market, they received a jolt of energy when Trump’s name was attached to the market. People flocked to the new TRUMP and MELANIA tokens, hoping to capitalize on the next big thing in digital currency. However, the coins have now seen a significant decline, currently worth only a fraction of what they were at their peak, reported Axios. The launch of these coins by the Trump Organization didn’t use Pump.fun’s platform directly, but it did contribute to a burst of excitement in the market—an excitement that has since fizzled.
A boom turned bust
Pump.fun has made it very easy for anyone to launch their own meme coin on the Solana blockchain, according to Axios. Thousands of meme coins flooded the market, creating a speculative frenzy as eager traders dove in. At its peak, Pump.fun was making tens of millions of dollars a week, from transaction fees and charges for coins that “graduated” to be traded on Solana, as per the report. But as the meme coin boom has begun to deflate, so has the platform’s revenue.
One of Pump.fun’s founders, known by the pseudonym Alon, said “it definitely doesn’t help that a significant amount of the money that was put in by retail traders at the top of $TRUMP has been lost, as quoted by Axios.
Major coins like Bitcoin and Solana have taken significant hits in the past month, with the total crypto market cap dropping more than 12% since February 20, reported CoinGecko. Bitcoin, which typically drives the market, is down 21% from its all-time highs, which it reached the same day Trump was inaugurated, reported Axios.According to Alon, the market downturn is tied more to the larger trends affecting Bitcoin and Solana than the specific failure of meme coins, as per Axios.
Bots take over
Another concern is that whenever there’s a crypto market buzzing with excitement, it often gets dominated by the big players, the “sharks”, who deploy automated trading bots that drain all the fun out of the process, reported Axios. As these bots get smarter and more efficient, the average trader has fewer opportunities to enjoy the thrill of the market.
When the fun fades away, traders start feeling like they’re being taken advantage of. This leads to frustration, and many of them end up quitting, reported Axios.
According to Axios, it’s tough to say whether this market is done for as it has dipped before, but now traders are on high alert.
FAQs
What happened to the Trump meme coins?
The Trump meme tokens, TRUMP and MELANIA, once gained a lot of popularity but have since taken a dive.
What’s happening with Pump.fun?
Pump.fun, the site which made it simple to create meme coins on the Solana blockchain, has had a sharp decline in revenue.
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