Donald Trump's Memecoin Faces Decline Amidst Uncertainty

According to Cointelegraph, Donald Trump's newly launched memecoin, named after himself, has experienced a significant drop in value following the former US president's admission of limited knowledge about the cryptocurrency. During a press conference on January 21, where Trump announced a $500 billion investment in artificial intelligence, he responded to a reporter's question about the memecoin by stating, "I don’t know where it is. I don’t know much about it other than I launched it, other than it was very successful." He further inquired about its current status and, upon learning of its billion-dollar valuation, remarked, "Several billion … that’s peanuts for these guys," referring to notable figures like OpenAI's Sam Altman, Oracle's Larry Ellison, and SoftBank's Masayoshi Son. The Official Trump (TRUMP) memecoin has seen its value decrease from a 24-hour high of over $48 to approximately $42, marking a decline of over 43% from its peak of $73.43 on January 19, as reported by CoinGecko. The memecoin was unexpectedly launched on January 18 and quickly reached an all-time high, achieving a fully diluted valuation exceeding $70 billion, surpassing other major memecoins. Bloomberg ETF analyst James Seyffart commented on the situation, stating, "Trump just nuked his own memecoin," in response to Trump's remarks. The Kobeissi Letter, a financial outlet, noted that Trump's apparent lack of involvement with the memecoin's launch might explain his absence of comments since its introduction. The decline in TRUMP's value was further compounded by the launch of a similar memecoin by First Lady Melania Trump. Her memecoin, Melania Meme (MELANIA), reached an all-time high of $13 on January 20 but has since plummeted by 68% to just over $4. The crypto community has expressed skepticism regarding Trump's memecoin, with some predicting a sell-off following the inauguration. Currently, there are 200 million TRUMP coins in circulation, with plans to increase the supply to a total of 1 billion coins over the next three years, according to the token's website. Additionally, Arkham Intelligence reports that one of Trump's crypto wallets is heavily invested in memecoins, with the largest holding being a token called TROG, valued at $3.1 million.