- TrumpCoin crashed by 95%, plummeting from $0.00555 to a low of $0.0001203.
- Trading volume surged by 169%, reaching $8.91 million despite the price drop.
- Controversy surrounds TrumpCoin’s origins, with claims involving Donald Trump denied.
In a dramatic turn of events, TrumpCoin (DJT), a Solana-based meme coin using former President Donald Trump’s name and image, has experienced a steep price drop. The token’s value plummeted by 95%, falling from $0.00555 to a low of $0.0001203 before recovering to around $0.00042 at press time.
Despite the massive price drop, trading activity for TrumpCoin surged. Data from Coinmarketcap reveals a 169% increase in trading volume, which stood at $8.91 million at press time.
While some may link the surge in trading activity to investors trying to offload their holdings, the total value locked (TVL) in TrumpCoin stands at approximately $23.1 million, reflecting ongoing investor interest despite the sharp price decline.
Why has TrumpCoin crashed?
The broader crypto market downturn significantly influenced TrumpCoin’s fall. A large-scale sell-off in the crypto market saw Bitcoin and Ethereum prices drop by 10% and 18%, respectively, erasing at least $500 billion from the market capitalization within three days.
The equity markets were also affected, with the S&P 500 falling 4.4%, driven by weak employment data and disappointing earnings from major tech firms.
Prior to the current market turmoil, Martin Shkreli, infamously known as “Pharma Bro,” claimed his involvement in creating TrumpCoin, sparking rumours that the project had official ties to Donald Trump.
Shkreli alleged that Trump and his son Barron were behind the memecoin, a claim that Roger Stone, a close aide to Trump, vehemently denied. This controversy led to over $6.3 million in bets on the authenticity of TrumpCoin on the crypto betting site Polymarket.
Despite reaching an all-time high of $0.01806 in June 2024, TrumpCoin has faced a steep decline, marking an all-time low of $0.0001203 on August 6, 2024.
The meme coin situation remains fluid amid the ongoing cryptocurrency meltdown and the controversy around who is behind the meme coin.