$TRUMP Coin Falls to $2.48 Billion, Losing $12 Billion in Value
Donald Trump’s meme coin, $TRUMP, launched on January 17 with a market cap of $15 billion. It has since fallen to $2.48 billion, resulting in a loss of $12 billion for investors.
The broader crypto market is experiencing a downturn, with Bitcoin down 20% and Ethereum reaching a 16-month low.
Investor Expectations
- Investors anticipated support for crypto under Trump's administration.
- No significant pro-crypto actions from Trump have led to disappointment.
- Kathleen Brooks from XTB noted that hopes for Bitcoin reserves fueled initial interest.
Market Pressures
- On March 2, Trump announced plans for a strategic crypto reserve, which caused a temporary price spike.
- Escalating trade tensions and recent tariffs on Mexico, Canada, and China are driving investors away from riskier assets.
- A $1.5 billion hack at the Bybit exchange linked to North Korea heightened security concerns.
$TRUMP as Artwork
The $TRUMP website describes the coin as an "artwork" representing support for Trump's ideals, not intended as an investment. This classification may help avoid legal complications associated with securities regulations.
