Trump's Memecoin Loses 75% of Its Value in Two Weeks, as Memecoin Market Suffers

Donald Trump drew plenty of criticism by launching his own branded memecoin three days before his inauguration, including from the crypto community which argued he was making a mockery of the crypto world by tying himself to the memecoin world, which could damage efforts to make crypto reforms.

Donald Trump's own branded memecoin, launched three days before his inauguration, drew plenty of criticism, especially from the crypto community, which argued that tying himself to the memecoin world was making a mockery of crypto. His move could also damage efforts to make cryptocurrency reforms.

Now, in the two-plus weeks since he has taken office, the value of the Trump coin has dropped sharply.

Trump's $TRUMP coin, which can be used to buy his Trump-themed sneakers, watches, and fragrances, lost another 6% of its value Tuesday afternoon, falling to $16.63 each. While that still gives the token a market cap of $3.3 billion, it's nothing compared to where it stood on January 19.

On the eve of his second term, Trump's memecoin hit an all-time high of $75.35 per token and a market cap of $14.5 billion. Chainalysis data, as reported by Reuters, found that 29 large buyers each held more than $10 million-worth of the memecoins, with five holding more than $100 million each. The recent drop represents a loss of more than 75% of its value.

A separate memecoin launched by Melania Trump has suffered similar losses, falling from $13.73 per token on January 20 to $1.60 on Tuesday, an 88% plunge. The $MELANIA loss would have been even larger if it hadn't been in rally mode Tuesday, gaining nearly 17% from 24 hours prior. (As with many memecoins, it's unclear what's driving the rally.)

The sell-off of $TRUMP has been gaining momentum largely since he finished taking the oath of office. By the end of January 21, the coin had lost nearly half its value, falling to little more than $40.

The recent declines have come amid Trump's tariff threats and growing fears of a trade war. The memecoin was down another 15% Monday as the deadline for the tariffs approached and last-minute deals were being made.

The loss of gains is not limited to $TRUMP. Most cryptocurrencies have given up any gains they've made since the first of the year, although Bitcoin is still up slightly. That's due, in part, to ongoing threats to free trade, a position that many crypto owners support.

The risk of higher prices on imported goods has also prompted investors to sell digital assets to reduce risk and avoid volatility in their portfolios. Memecoins have been particularly affected by the sell-off. Selling holdings like memecoins also gives owners access to cash, which could be useful if costs increase across the board.