Eric Trump's 'official endorsement' fails, TRUMP coin price drops by 9%, reflecting three major underlying logical changes in the current crypto market:
1. Celebrity Effect 'Desensitization': From Faith to Caution
Historical Overdraft of Trust
The Trump family has repeatedly used political influence to endorse crypto projects, but the market has observed a pattern of 'buy the rumor, sell the news' (for example, after Eric promoted ETH in February, WLFI transferred $300 million worth of ETH, causing a 30% drop). This TRUMP coin collaboration is widely viewed as 'Harvest Script 2.0', and investors instinctively seek to avoid risk.
Shift in Meme Coin Ecosystem
As the hype around Meme coins like Solana fades, market preference has shifted from 'air narratives' to utility tokens. Even with the Trump family’s aura, TRUMP coin, lacking actual ecological support, struggles to continuously attract funds.
2. Intensifying Trust Crisis: Blurring Boundaries Between Politics and Finance
Regulatory Risks Become Apparent
Democratic lawmakers have publicly accused the list of TRUMP coin holders as the 'President’s Beneficiary List', and SEC investigations into family-related projects have heightened market concerns. Investors realize that such tokens could instantaneously drop to zero due to policy shifts.
Family Infighting Weakens Consensus
The crypto turf war between WLFI and the Fight Fight Fight team has exposed internal contradictions, leading to doubts about the Trump brand’s control. This collaboration is interpreted as a hasty 'rescue', which instead reinforces negative expectations.
3. Market Structure Transformation: From Emotion-Driven to Value Selection
Institutional Dominance in Pricing Power
Currently, over 70% of trading volume in the crypto market is contributed by quantitative institutions, which are far less sensitive to celebrity endorsements than retail investors. The circulation of TRUMP coin, 80% controlled by WLFI, has instead triggered algorithmic trading to short-sell.
Layered Risk Appetite
Mainstream funds are shifting from Meme coins to RWA and other narratives, while TRUMP coin has failed to connect with new tracks like emerging projects BOME and SLERF, leading to the rapid withdrawal of even the remaining speculative funds.
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