Before Trump's inauguration, the market capitalization of Meme Coin fell by $11 billion
The digital token that Donald Trump, the future president, introduced over the weekend attracted early trading activity in the billions. But the cryptocurrency market was shaken when it sharply fell on Monday, just before his inauguration.
After its introduction on Solana on January 18, the market value of the Official Trump token ($TRUMP) surged to over $15 billion by Saturday. But by Monday, it fell to $9 billion, erasing $6 billion in value.
The value of Meme Coins related to celebrities or events can fluctuate significantly. The speculative nature of meme currencies, investors pulling their money out, and concerns about the future value of the token are all possible reasons for the $11 billion drop.
According to the $TRUMP website, 80% of the meme currency belongs to CIC Digital and Fight Fight Fight, two organizations linked to the Trump Organization. The price may drop if this concentrated supply makes people fear market manipulation or sell their shares after lock-up periods.
Many believe that TRUMP is just another meme coin, but in reality, it is a 'fan token.' According to the corporation, holders use it to celebrate the market rise following Trump's victory in November and to demonstrate their support for crypto-friendly policies that may be enacted by his administration. #gantttzeu
