MAGA (TRUMP) and other memecoins associated with Donald Trump experienced a significant drop of over 30% following rumors of the launch of an “official” token by Trump’s team on the Solana blockchain.
According to Pirate Wires, a popular online forum, TrumpCoin, also known as DJT, was set to be launched as an official token by Donald Trump himself. It was claimed that Trump’s son, Barron, was leading this initiative. However, no official confirmation has been made by Trump’s team, and blockchain data firms like Bubblemaps have cast doubt on the authenticity of DJT’s connection to the presidential candidate. Bubblemaps highlighted that a large portion of the token supply is concentrated in one cluster, and a significant percentage is traded on Raydium, an automated market maker on Solana.
Despite the skepticism surrounding the token launch, TRUMP experienced a sharp decline of 31%, dropping to $7.46 within just four hours after the rumors emerged. This resulted in a loss of over $150 million in market cap for the TRUMP token, which is associated with the “Make America Great Again” slogan.
Other Trump-themed memecoins were also adversely affected. The Solana-based Donald Tremp (TREMP) token saw a decrease of 36.8% from $0.95 to $0.60, although it later recovered to $0.76.
Interestingly, even the Jeo Boden (BODEN) token, linked to Trump’s main presidential rival Joe Biden, experienced a decline of over 22%.
In the midst of these developments, DJT managed to achieve a market cap of $120 million on June 18, despite being relatively unknown in the market. Birdseye data revealed that the first batch of DJT tokens was minted on April 22.
While the industry awaits official confirmation from Trump’s team regarding the token launch, many industry leaders expressed frustration with the individuals behind this initiative. This comes at a time when presidential candidates, including Trump, Biden, and Robert F. Kennedy Jr., are paying more attention to the cryptocurrency industry as the upcoming presidential election approaches.