DJT Memecoin Plummets 95% Amid Market and Controversy
- TrumpCoin (DJT) experienced a 95% price drop on August 6.
- Trading volume soared by 35,501%, with a 1,736% increase in traders.
- The overall crypto market faced a massive sell-off, erasing $500 billion.
Shkreli-Linked DJT Memecoin Faces 95% Value Drop
The TrumpCoin (DJT), a Solana-based memecoin associated with former U.S. President Donald Trump name and image, has experienced a dramatic 95% drop in value. The token's price plummeted from $0.00555 to $0.000229 on August 6 before recovering slightly to around $0.000430.
However, the trading volume increased by 35,501% with 1,736% increase in traders according to the token price tracker Birdeye. The token has a total value locked (TVL) of $23. 1 million. This steep decline is in line with the overall crypto market trend where the market witnessed a massive selling spree in the last few days.
TrumpCoin's Controversial Decline Amid Market Sell-Off
The drastic price change of TrumpCoin is not unique to it but is a common occurrence in the crypto market. On August 5, the market recorded the biggest three-day sell-off in the market for the last one year erasing at least $500 billion from the market capitalization.
This sell-off affected the leading cryptocurrencies such as Bitcoin and Ether by depreciating by 12% and 22% respectively. The fluctuations in the crypto market were followed by a decline in equity markets; the S&P 500 declined by 4%. Factors that have given rise to the situation include poor employment statistics and poor earnings from major technology firms.
TrumpCoin's sharp decline has also been influenced by controversy and speculation surrounding its origins. In June, Martin Shkreli, infamously known as "Pharma Bro" and a former hedge fund manager who served over six years in prison for securities fraud, claimed involvement in the creation of TrumpCoin.
Shkreli suggested that the memecoin had the endorsement of Donald Trump and was even launched by Trump’s son, Barron Trump, with approval from his father. Additionally, Shkreli named the influencer "Ansem" as part of the project.
However, Roger Stone, a close aide to Donald Trump, firmly denied any connection between the Trump family and the memecoin. Despite Stone's denial, the ambiguity surrounding the coin's legitimacy led to significant speculation and betting. According to Polymarket, a crypto betting site, over $6.3 million was wagered on whether the token was truly linked to Trump.
Conclusion
The fact that TrumpCoin experienced a massive price decline and the subsequent market turmoil demonstrate that the cryptocurrency market is highly unpredictable and has a strong element of gamble. The overall market sell-off due to the poor economic signals and underperformance of the tech giants compounded the meme coin’s losses. While Martin Shkreli’s statements only contributed to the mystique around TrumpCoin, the fact remains that Donald Trump and his family never endorsed the token, which puts its authenticity into question.
