Two widely followed crypto traders say President Trump may have made one of the biggest financial mistakes in modern history moments before taking office.
In a new State of the Markets video, pseudonymous analysts DonAlt and Cred claim that the launch of Trump’s official memecoin (TRUMP) has potentially squandered a huge fortune for the 47th president.
After its initial launch on January 17, TRUMP reached a fully diluted market capitalization of $72 billion in a matter of days, making it one of 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 collapse in TRUMP’s price as investors realized their coins could essentially be diluted by the Trump family’s new tokens.
Crypto trader Cred says the move hammered home TRUMP’s seemingly unstoppable rise.
“Not being too hyperbolic about this seems like one of the worst decisions in modern financial history. But if you look at how much the value has grown, how quickly it has reached tens of billions in market cap. The liquidity that was there. Attention. Mental sharing.
It was literally cannibalizing the entire market and you created it out of nowhere and then you just swiped that on a Melania piece.
Fellow trader DonAlt agrees, warning that Trump and his team’s 80% allocation will be released over time, potentially hitting the open market.
“I’m not saying it’s going to go to zero anytime soon. I think something will probably stabilize and bleed over time.
But I wouldn’t want to stay close to the unlocks, because I mean, by the way they flipped the Melania coin, I’m 90% sure you’re going to get dropped on your head.
TRUMP has now fallen from an all-time high of $72.62 on January 19 to $29.43 at press time.
The level of Trump’s direct involvement in the launch of the two coins — attributed to Trump-affiliated organizations CIC Digital LLC and Fight Fight Fight LLC — is questionable.
When asked about his new memecoin two days ago, Trump said he wasn’t tracking its progress closely.
“I don’t know much about it other than I started it. I heard it was very successful. I haven’t checked it.
Although its 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-owned 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 directive that effectively blocked banks from holding crypto assets on behalf of their customers.
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