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Trump-Inspired Memecoins Crash 30% After Rumors Of Trump’s Official Token Launch

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The crypto industry has been a crucial topic in the electoral campaign for the November US presidential elections. This year, presidential candidates have embraced cryptocurrencies to obtain the industry’s support. As a result, the community has capitalized on the momentum with Memecoins.

PolitiFi tokens, a new memecoin category inspired by political figures, have performed remarkably this Q2. Trump-inspired tokens have been the talk of the town after the Republican candidate started endorsing cryptocurrencies. However, these memecoins have suffered a massive 30% drop in the last 24 hours.

An Official DJT Token?

On Monday, Pirate Wires’ X account announced the launch of an alleged official ‘Trump Coin.’ According to the report, the token is supposedly led by Trump’s 18-year-old son, Barron Trump. “Per conversations, Trump is Launching an official token – $DJT on Solana, Barron spearheading,” read the post.

Mike Solana, CMO at Founders Fund and editor-in-chief at Pirates Wires, shared a smart contract address seemingly linked to the token. Additionally, he stated he was “just reporting” on what he knew “via sources” and that he “didn’t speak with Trump directly.”

Similarly, Martin Shkreli claimed the DJT token is real on an X Space. He later maintained his position, highlighting the “confirmation” from a friend of Barron Trump. In a post, the 17-year-old stated, “$DJT IS THE ONLY REAL TRUMP TOKEN.”

However, the crypto community remains skeptical about the authenticity of the memecoin. Several users highlighted various red flags surrounding the “official” token, including the DJT’s X Account.

A user pointed out that the official X account has a “strange” following list. This list includes the controversial figure Andrew Tate, American streamer Adin Ross, and Shkreli.

Moreover, crypto analytics firm Bubblemaps revealed that 67% of the token’s supply was in one cluster. Raydium Concentrated Liquidity is the largest holding, accounting for 43% of the supply.

Many community members expressed their concerns with humor. Some users suggested that serial scammer Sahil Arora, responsible for several celebrity memecoins rugs, orchestrated the token launch. Others wondered if the inconsistencies of the launch made it “more or less likely” that it was a business venture from the Trump family.

At the time of writing, no official sources have confirmed Trump’s involvement with the DJT token.

Trump Memecoins Plummet

Over a month ago, the former US president declared he was “fine” with cryptocurrencies and wanted to make it a “solid” industry with clear regulations. At the time, Trump-inspired memecoins soared over 63% following his declarations. Additionally, the PolitiFi sector surged, with tokens like BODEN increasing by nearly 30%.

Nonetheless, the story is different this time as the rumors of an official Trump token negatively impacted the performance of the memecoins. The PolitFi tokens report a 30% decline in the last 24 hours, with a market capitalization of $1.03 billion.

Trump-related tokens took the biggest hit in the sector. Many dropped between 20% and 30% on the last day. MAGA (TRUMP), the largest token related to the former US president, saw its price decline by nearly 50% in four hours.

Following the “Trump coin” rumors, TRUMP dropped from the $10.8 to the $5.6 price range before recovering below the $7 mark. As of this writing, the token is trading at $6.94, a 38.7% retrace in the past 24 hours.

Similarly, Trump Mania (TMANIA), Super Trump (STRUMP), and Doland Tremp (TREMP) have suffered a 35.2%, 20%, 37.6% price decline.

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