Donald Trump's Cryptocurrency Entry Encounters Setbacks as Meme Coin Tokens and Trump-Backed Crypto Firm Report Losses

Donald Trump's entry into cryptocurrency has encountered setbacks. Both the Trump ($TRUMP) and Melania ($MELANIA) meme coin tokens have experienced

Both the Trump ($TRUMP) and Melania ($MELANIA) meme coin tokens have experienced significant losses, while the Trump-backed crypto firm, World Liberty Financial, has reported a sharp decline in its portfolio value.

The $TRUMP memecoin, launched on Jan. 17, saw a rapid rise to $75.35, its all-time high, just two days after launch. By Feb. 3, its value had dropped to $17.62 , representing a sharp 75% decline. Despite early promotion through Trump’s social media, the token’s performance has remained under pressure.

Technical data reflects this downward trend. The Relative Strength Index (RSI) for $TRUMP has remained below the neutral 50 mark for several days, highlighting sustained selling pressure. Additionally, the Chaikin Money Flow (CMF) has stayed in negative territory, indicating continued capital outflows.

Meanwhile, the $MELANIA memecoin, introduced on Jan. 19, peaked at $13.63 but has since dropped to around $1.40. This represents a 90% decrease in value. Like the $TRUMP token, $MELANIA has struggled to attract consistent buying activity, further compounding its losses.

Both Trump memecoins faced market volatility following their launches, and neither has managed to recover early momentum.

Elsewhere, World Liberty Financial, a cryptocurrency investment firm associated with Donald Trump, has recorded significant losses. According to blockchain analytics platform SpotOnChain, the firm invested $242.77 million in cryptocurrencies between Jan. 19 and 31, 2024. By Feb. 3, the portfolio had dropped 21% in value, leading to unrealized losses of $51.7 million.

The largest asset in the portfolio, Ethereum (ETH), accounted for a $36.7 million loss, with its value declining 24.45%. Wrapped Bitcoin (WBTC), the second-largest holding, saw a 12.07% decline, resulting in an $8 million loss. Ethena (ENA), a smaller holding, suffered the steepest percentage drop at 43.7%, equating to a $2 million loss.

Other assets in the portfolio, including TRON (TRX) and AAVE, also contributed to the firm’s losses. TRON dropped by 14.78%, while AAVE fell 35.74%. Despite diversification, the portfolio was unable to withstand the broader market downturn.

Bitcoin’s recent decline is part of a broader cryptocurrency market downturn following President Donald Trump’s announcement of new trade tariffs targeting Canada, Mexico, and China. On Sunday, Bitcoin’s price fell below $95,000, reaching an intraday low of $91,441.89, marking its lowest level in three weeks. This represents a decline of approximately 15% from its record high last month.

Other major cryptocurrencies, such as Ethereum, also experienced significant losses, with Ethereum dropping by up to 20%. These developments reflect heightened investor anxiety over a potential global trade war and its implications for the cryptocurrency market.