Two widely followed crypto traders say President Trump may have made one of the biggest financial blunders in modern history moments before taking office.
In a new video on the state of the markets, pseudonymous analysts DonAlt and Cred say the launch of Trump’s official memecoin (TRUMP) potentially squandered a massive fortune for the 47th President.
After its initial launch on January 17th, TRUMP soared to a $72 billion fully diluted market cap in a couple of days, making it among the top 20 crypto assets in existence – with Trump and his affiliates holding 80% of the supply.
Then, Trump abruptly launched a second official coin called MELANIA, which triggered an immediate crash in the price of TRUMP as investors realized their coins can essentially be diluted by new Trump family tokens.
Crypto trader Cred says the move hammered the seemingly unstoppable rise of TRUMP.
“It feels like one of the worst decisions of modern financial history, not to be too hyperbolic about it. But if you look at like how much it went up, how quickly it got to the tens of billions in market cap. The liquidity that was there. The attention. The mind share.
It was literally cannibalizing the entirety of the market and you spawned it out of nowhere and then you just fumble that on a Melania coin.”
Fellow trader DonAlt says he agrees, warning that Trump and his team’s 80% allocation will be unlocked over time, potentially hitting the open market.
“I’m not saying this is going to go to zero anytime soon. I think if anything is probably going to just stabilize and bleed over a while.
But I would not want to hold anywhere close to the unlocks because I mean just by the way that they launched Melania coin I’m like 90% certain that you’re going to get dumped on your head.”
TRUMP has now dropped from an all-time high of $72.62 on January 19th to $29.43 at time of publishing.
The level of involvement that Trump directly had in the launches of both coins – which are attributed to the Trump-affiliated organizations CIC Digital LLC and Fight Fight Fight LLC – is debatable.
When asked about his new memecoin two days ago, Trump said he wasn’t closely following its progress.
“I don’t know much about it other than I launched it. I heard it was very successful. I haven’t checked it.”
Although his memecoins may have faltered, many in the industry are celebrating a number of Trump-fueled digital asset developments this week.
On Thursday, President Trump signed an executive order to analyze the creation of a government-held strategic crypto reserve, prohibit the development of a Central Bank Digital Currency (CBDC) and promote stablecoins.
Trump’s new leadership at the SEC also eliminated a controversial accounting guideline that effectively prevented banks from holding crypto assets on behalf of their customers.
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