According to CoinDesk, a significant market downturn has led to a sharp decline in the value of the TRUMP token, endorsed by U.S. President Donald Trump. The token, which was launched just days before Trump’s inauguration on January 20, has seen its value drop by 75% from its peak. Initially, the TRUMP token reached a market capitalization of $14 billion within 48 hours of its release, but many retail investors have incurred losses, as highlighted in a CoinDesk analysis.
Despite the downturn, President Trump continues to promote the TRUMP token on his social media platform, Truth Social. Over the weekend, he expressed his support by posting “I LOVE $TRUMP!!” along with a link to purchase the token. However, the market’s reaction has been less favorable than expected. By Sunday morning, the token’s value had fallen to $19.09, marking its lowest point since Trump’s return to the presidency and significantly below its initial listing price on major exchanges, which was around $40.
This situation underscores the inherent volatility of celebrity-endorsed meme tokens, where even prominent endorsements may not withstand broader economic influences and market dynamics. The decline of the TRUMP token is not an isolated incident; it coincides with a wider market downturn following President Trump’s announcement of new trade tariffs against Canada and Mexico. In the past 24 hours, Bitcoin (BTC) has decreased by 6%, while other major cryptocurrencies like XRP and Dogecoin (DOGE) have experienced declines exceeding 25%, erasing gains made in December and January.
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