The memecoins associated with former President Donald Trump, such as MAGA (TRUMP) and other Trump-themed tokens, have experienced significant losses. These tokens fell more than 30% amidst swirling rumors that Trump’s team has launched an “official” token on the Solana blockchain.

A tweet from Pirate Wires on June 17 claimed, “Per conversations, Trump is launching an official token” named TrumpCoin under the ticker DJT. This post, shared with Pirate Wires’ 63,800 followers, further asserted that Trump’s 18-year-old son, Barron Trump, was leading the initiative.

Unconfirmed Trump Token Sparks Market Turmoil

Despite the assertions from Pirate Wires, Donald Trump’s team has not confirmed the launch of any such token. Blockchain data firms like Bubblemaps have voiced skepticism about DJT’s legitimacy. Bubblemaps pointed out that around 67% of DJT’s supply is concentrated in one cluster, and 43% of the total supply is held on the Solana-based automated market maker Raydium. These factors suggest that DJT might not be officially linked to Trump.

Nevertheless, the impact of the rumor was swift and severe. The value of TRUMP plummeted by 31%, dropping to $7.46 within just four hours, as indicated by CoinGecko data. This sharp decline wiped out over $150 million from the Make America Great Again-themed TRUMP market cap, causing significant financial damage to investors.

Smaller Trump-related memecoins also faced considerable declines. For instance, the Solana-based Donald Tremp (TREMP) memecoin saw a 36.8% drop from $0.95 to $0.60 within a similar timeframe before recovering slightly to $0.76. The Jeo Boden (BODEN) token, associated with Trump’s primary presidential rival Joe Biden, also fell by over 22%.

Interestingly, amidst the chaos, DJT’s market cap surged to $120 million on June 18, despite the token being relatively unknown until the rumors surfaced. Data from Birdseye reveals that the first DJT tokens were minted on April 22, suggesting some pre-planned activity behind the scenes.

Industry Leaders Demand Clarity

As the cryptocurrency industry awaits confirmation or denial from Trump’s camp, several industry leaders have voiced their frustration. The timing of the rumored token launch is particularly sensitive as presidential candidates like Trump, Biden, and Robert F. Kennedy Jr. have recently shown increasing interest in the cryptocurrency sector ahead of the upcoming election.

The speculative launch of DJT has disrupted the market, leading to significant losses for investors and raising questions about the integrity of those behind the token. With the presidential race heating up, the crypto industry is keenly observing how these political figures will engage with the rapidly evolving world of digital currencies.

The abrupt market reaction to the DJT rumors highlights the volatility and sensitivity of memecoins to news and speculation. While some investors managed to recover part of their losses, the incident underscores the need for greater transparency and verification in the cryptocurrency space, especially when it involves high-profile figures.

In conclusion, the unverified rumors of Donald Trump launching an official DJT token have had far-reaching effects on the market, causing a substantial decline in the value of Trump-related memecoins. As the situation develops, the crypto community remains on edge, awaiting further information that could either validate or dispel the current speculation.

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Filed under: News - @ June 18, 2024 6:02 am