Investors backing the $TRUMP meme coin have suffered massive losses after the cryptocurrency, tied to Donald Trump’s political brand, crashed by over 80%. Launched on January 17, 2025, just days before Trump’s inauguration, the coin initially soared, reaching a peak market cap of $15 billion on January 19. However, by February 27, its value had plunged to just $2.7 billion, wiping out more than $12 billion in investor wealth.
Critics argue the coin’s meteoric rise and fall resembled a classic “pump and dump” scheme, where early investors cashed out while latecomers were left holding worthless tokens. Some financial analysts and ethics experts have raised concerns about the ethics of a cryptocurrency so closely linked to a sitting president.
In response to the fallout, Democratic Representative Sam Liccardo has introduced the MEME Act, a bill aiming to ban presidents, lawmakers, and senior officials from endorsing or issuing cryptocurrencies to prevent conflicts of interest.
The collapse of $TRUMP has also triggered a broader selloff in the crypto market. Bitcoin has dropped 21% from its January peak, and Ethereum has fallen over 40% since December. Investors are now treading cautiously, wary of politically driven digital assets.
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