Trump Memecoin DJT, Led by Martin Shkreli, Crashes by 95%

The Solana-based memecoin DJT, named after former President Donald Trump, experienced a severe price drop on August 6. The token's value fell from $0.00555 to $0.000229, representing a 95% decrease, before a brief recovery to $0.000430 per token. This drastic fall occurred amid a broader crypto market downturn.

Despite the price collapse, DJT's trading volume surged by 35,501%, with a 1,736% increase in the number of traders over the past 24 hours, according to token price tracker Birdeye. The total value locked (TVL) in DJT currently stands at $23.1 million.

TrumpCoin price falls by 95% on Aug. 6. Source: Birdeye

The token’s price drop coincided with a significant sell-off in the broader crypto market. On August 5, the market lost at least $500 billion in total capitalization as Bitcoin and Ether fell by 10% and 18%, respectively. This sell-off mirrored a 4.4% drop in the S&P 500, influenced by weak employment data and disappointing earnings from major tech firms.

TrumpCoin’s Background

Despite its name and imagery, TrumpCoin (DJT) is not officially affiliated with Donald Trump. The controversy surrounding the token intensified when Martin Shkreli, known as "Pharma Bro" and convicted of securities fraud, claimed involvement in the token’s creation. Shkreli suggested that Barron Trump, Donald Trump's son, launched the memecoin with his father's approval. This speculation led to over $6.3 million in bets on the crypto betting site Polymarket about the token's legitimacy.

Although Trump has not issued a statement regarding his involvement, his close aide Roger Stone denied any connection between Trump or his son and the memecoin. This clarification came amid the rampant speculation fueled by Shkreli’s assertions.