Trump Family Meme Coins: A Disaster for Whales
In a shocking turn of events, the launch of Trump family meme coins has not only rocked the cryptocurrency world but has also led to a decline in whale population. Just a day after Donald Trump assumed office as the 47th President of the U.S., whales suffered significant losses due to investments in the MELANIA and TRUMP tokens.
Whale Suffering: TRUMP Token’s Rollercoaster Ride
The debacle began with the launch of the Official TRUMP (TRUMP) token on the Solana (SOL) blockchain on January 18, just two days before Trump’s inauguration. The token quickly soared to a staggering $75, boosting its market cap to almost $15 billion with an 840% surge from its all-time low of $6.24. However, the TRUMP token’s value plummeted by 57% to $33 by January 21, causing massive losses for investors.
On-chain analyst Look On Chain shed light on a crucial transaction involving the wallet “Ansem.” The wallet initially invested $9.38 million to purchase 194,799 TRUMP at $48.14, only to sell them at a loss of $2.55 million after receiving $6.83 million. This downward spiral left many investors reeling from the rapid fluctuations in the market.
Whale’s Plight: MELANIA Token Crashes
A whale recently acquired 440,136 Melania Meme (MELANIA) tokens for $5.1 million, equivalent to 20,185 Solana. However, with the MELANIA token’s value plummeting by 75%, the whale’s investment now stands at a mere $1.56 million, resulting in a staggering $3.53 million loss. This sharp decline in value has sent shockwaves through the crypto community and raised concerns about the sustainability of meme coins.
Community Backlash and Uncertain Future
The launch of these tokens has ignited widespread criticism, with many accusing the President of exploiting his position for personal gain. Despite some traders claiming to have become overnight millionaires from these tokens, the overall sentiment remains one of skepticism and distrust. Ki Young Ju, CEO of CryptoQuant, predicts that meme coins will continue to dominate the crypto market until 2028, coinciding with the duration of Trump’s presidency. Additionally, the President’s failure to address crypto during his inauguration has left both attendees and the crypto community bewildered and uncertain about the future of digital currencies.
As we witness the aftermath of the Trump family meme coins, it serves as a stark reminder of the risks and volatility inherent in the crypto market. Investors must exercise caution and due diligence to navigate these turbulent waters and safeguard their assets from potential losses. Remember, not all that glitters is gold in the world of cryptocurrency.