Memecoins
Trump-Inspired Memecoins Crash 30% After ‘Trump Coin’ Rumors
The crypto industry has been a crucial topic in the campaign trail for the US presidential elections in November. This year, presidential candidates have embraced cryptocurrencies to garner industry support. As a result, the community capitalized on the momentum with Memecoins.
PolitiFi tokens, a new category of memecoin inspired by political figures, performed remarkably during this second quarter. Trump-inspired tokens became the talk of the town after the Republican candidate began supporting cryptocurrencies. However, these memecoins suffered a massive 30% drop in the last 24 hours.
An official DJT token?
On Monday, Pirate Wires account X announced the launch of a so-called official “Trump Coin.” According to the report, the token is allegedly run by Trump’s 18-year-old son Barron Trump. “According to conversations, Trump is launching an official token – $DJT on Solana, Barron in the lead,” the post read.
Mike Solana, chief marketing officer of Founders Fund and editor-in-chief of Pirates Wires, sharing a smart contract address apparently linked to the token. Additionally, he said he was “merely reporting” what he knew “via sources” and that he “did not speak directly with Trump.”
Likewise, Martin Shkreli claimed that the DJT token was real on an X Space. He then maintained his position, pointing to a friend’s “confirmation” of Barron Trump. In a post, the 17-year-old said: “$DJT IS THE ONLY REAL TRUMP TOKEN. »
However, the crypto community remains skeptical on the authenticity of the memecoin. Several users pointed out various red flags surrounding the “official” token, including DJT’s X account.
One user pointed out that the official X account had a “strange” following list. This list includes controversial figure Andrew Tate, American streamer Adin Ross and Shkreli.
Additionally, crypto analysis company Bubblemaps revealed that 67% of the token supply was in a single cluster. Raydium Concentrated Liquidity is the largest stock, accounting for 43% of the supply.
Many community members expressed their concerns with humor. Some users have suggested that serial scammer Sahil Arora, responsible for several celebrity memecoins rugs, orchestrated the symbolic launch. Others questioned whether the launch’s inconsistencies made it “more or less likely” that it was a Trump family business venture.
At the time of writing, no official sources have confirmed Trump’s involvement in the DJT token.
Trump Memecoins Fall
More than a month ago, the former American president declared he was “good” with cryptocurrencies and wanted to make it a “robust” industry with clear regulations. At the time, Trump-inspired memecoins soared more than 63% following his statements. Additionally, the PolitiFi sector has exploded, with tokens like BODEN increasing by almost 30%.
However, the story is different this time as rumors about an official Trump token have negatively impacted memecoin performance. PolitFi tokens are reporting a 30% decline over the past 24 hours, with a market cap of $1.03 billion.
Trump-related tokens have been hit hardest in the sector. Many fell between 20 and 30% in the last day. MAGA (TRUMP), the largest token linked to the former US president, saw its price fall by almost 50% in four hours.
Following rumors of “Trump coin”, TRUMP abandoned from the price range of $10.8 to $5.6 before falling back below the $7 mark. At the time of writing, the token is trading at $6.94, a 38.7% retracement over the past 24 hours.
Likewise, Trump Mania (TMANIA), Super Trump (STRUMP), and Doland Tremp (TREMP) suffered a price decline of 35.2%, 20%, 37.6%.
Featured image from Unsplash.com, chart from TradingView.com