Trump Meme Coin Crash: Whales Cash Out, Leaving Retail Investors Vulnerable

The Official Trump meme coin has experienced a significant downturn over the past two days, with data indicating that many large investors, or “whales,” have begun selling off their holdings. As a result, the TRUMP token price has plummeted to $38.50, representing a 50% decline from its peak on Sunday. This crash has led to a substantial decrease in the coin’s market valuation, which now stands at approximately $7.6 billion.

Whales Book Profits, Retail Investors Left Holding the Bag

According to data compiled by Nansen, the most profitable TRUMP whales have sold a significant portion of their holdings, reaping substantial profits in the process. The largest TRUMP wallet, for instance, recorded a total profit of $57 million and has sold most of its tokens, still holding an unrealized profit of $13 million. This suggests that the holder expects the coin to recover in the future.

Other notable whales have also sold off their holdings, with the second-largest wallet earning $53 million in total profit and selling all of its tokens. Another wallet made $34 million in profit and has sold 84% of its tokens. These figures indicate that whales have booked profits, potentially leaving many retail investors holding the bag.

Declining Holder Numbers May Continue Downward Trend

Data from CoinCarp shows that the number of Official Trump meme coin holders is also declining. On Monday, there were 847,335 holders, a number that has since dropped to 832,200. This downward trend may continue, further exacerbating the coin’s decline.

Meme Coin Price Patterns: A Familiar Story

Most meme coins tend to follow similar price patterns: an initial surge fueled by FOMO-driven speculators, followed by a sharp crash. This trend has repeated itself many times during the current crypto bull run.

Examples of this trend include Popcat, which surged to a record high of $2.10 in 2024 before crashing by over 78%. Similarly, Kekius Maximus reached $0.3978 earlier this year after Elon Musk changed his X name and profile picture. It has since plunged by 92%.

Even older meme coins have not been spared, with Shiba Inu remaining 75% below its all-time high of $0.00008577, while Dogecoin is down over 51% from its peak.

Risk of Lawsuits Looms Over Trump Tokens

A significant risk for the Official Trump and Melania Trump tokens is that their ongoing crashes could attract lawsuits. Crypto promoters have faced legal action before for endorsing tokens on their social media platforms. Notably, Hawk Tuah Girl was sued after her $HAWK meme coin crashed. Similar cases could arise if the Trump tokens continue to experience massive losses, especially if retail investors allege fraud or manipulation.

As the situation continues to unfold, it’s essential to stay informed about the latest developments in the world of cryptocurrency. For more news and updates, visit Global Crypto News.

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