Prices of meme coins linked to U.S. President Donald Trump have plunged more than 90% in a year, signaling that the meme-coin frenzy is cooling rapidly. The so-called "Trump coin," which surged ahead of the inauguration early last year, is now trading about 94% below its peak.
On the 21st (local time), according to crypto market tracker CoinMarketCap, the Trump meme coin at one point soared from $1.20 to $75.35 shortly after launch. But the price is now down to about $4.86 after a year. That is a 94% plunge from the peak. Investors who bought during the price spike have been left with heavy losses.
Shortly after the Trump coin launch, First Lady Melania Trump also introduced a meme coin named after herself. That coin likewise once rose to $13.73 but is now trading around $0.15. The drop from the all-time high reaches 99%. The back-to-back issuance of meme coins by the presidential couple sparked considerable controversy in political circles and across the crypto industry.
The sharp drop in the Trump coin is seen as an example that shows the meme-coin investment fever that persisted from late 2023 to early 2024 is cooling. Meme coins can be created easily online by anyone and are characterized by the lack of clear intrinsic value, business model, or cash flow. Instead, their prices tend to swing wildly depending on associations with famous figures and the speed of online spread. Because of these traits, they have faced criticism for being highly speculative.
Despite the price plunge, the Trump coin's presence has not completely disappeared. By CoinMarketCap's measure, the Trump meme coin still ranks as the fifth-largest meme coin by market capitalization. However, observers say it is difficult to find the same explosive interest as before.
The latest price decline is rekindling criticism surrounding the Trump family's crypto businesses. A recent investigation by the Financial Times (FT) in the U.K. found that crypto ventures involving the Trump family generated more than $1 billion (about 1.4 trillion won) in pre-tax profit through sales and transaction fees, among other sources. Fee revenue from just the two Trump and Melania meme coins alone was estimated at about $427 million (about 600 billion won).
Industry officials, experts, and Democratic Party figures have said this revenue structure carries a high risk of abuse of power. They have raised concerns about conflicts of interest because crypto assets issued by the president and family could be used as a means of personal profit.
In fact, civic groups including the Campaign for Accountability and Project on Government Oversight recently sent a letter to the U.S. Senate urging that provisions restricting senior officials' crypto holdings and transactions be included in crypto market regulation. They warned that without adequate regulation, "those in power could exploit the system and expose retail investors to fraud, manipulation, and abuse."
Meanwhile, President Trump, since returning to the White House, has continued crypto-friendly moves by appointing regulators inclined toward digital assets and pardoning some crypto-related offenders. The Trump family has also expanded its influence by establishing several crypto-related enterprises beyond meme coins.
At the same time, Trump Media & Technology Group is pushing to diversify its business around the social media platform "Truth Social." The company has also said it plans to issue a new crypto token through a partnership with Crypto.com. However, some observers note that after the meme-coin price crash, scrutiny from politicians and regulators could grow more stringent.