FLOKI (floki) 
The Official Trump meme coin has plummeted to a record low, with on-chain data indicating that the most profitable investors have exited the market.
Market Performance
The Official Trump price crashed to a low of $27 on Saturday, down by approximately 63% from its all-time high. This significant plunge has resulted in a substantial decrease in its market capitalization, from $14 billion to $5.3 billion.
Whale Investors Exit
On-chain data reveals that, as with most meme coins, the largest whales have exited their positions, leaving many retail traders holding the bag. Notably, the most profitable Official Trump investor made a substantial profit of $53 million and has already sold all their tokens.
The second investor made a profit of $52 million and has sold approximately 70% of their assets, worth $44 million. The third investor, who made a profit of $42 million, has sold $30 million worth of tokens and still holds tokens worth $12 million.
These sales occurred due to the rapid price surge of the token before the inauguration, leading to a subsequent liquidation. The investors likely understood that most meme coins tend to crash after the initial frenzy ends, and the token lacks intrinsic value.
Smart Money Investors Sell
Additional data shows that the number of smart money investors, who are more sophisticated than retail investors due to their experience, has dropped significantly. The number of smart money investors has decreased from 340 last week to just 130 today. Tokens held by these investors have also decreased from almost 30 million to 14.4 million.
Potential Legal Issues
The ongoing decline of the TRUMP and MELANIA meme coins has attracted scrutiny in Washington. Senator Elizabeth Warren and Representative Jake Auchincloss have called upon authorities to investigate the TRUMP tokens due to concerns over market manipulation and potential foreign influence.
A hypothetical lawsuit against Trump and Melania may arise from investors who have lost money. A similar lawsuit was recently filed against Hawk Tuah Girl after her HAWK token crashed, with investors accusing her of promoting an unregistered security.
A lawsuit against Trump and the first lady could lead to further sell-off of their meme coins, exacerbating the market decline.
Tips for Investors
When investing in meme coins, consider the following:
- Understand that most meme coins lack intrinsic value and tend to crash after the initial hype ends.
- Be cautious of market manipulation and potential foreign influence.
- Monitor on-chain data and smart money investor activity to make informed investment decisions.
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