The cryptocurrency market faced a major setback as the Trump-themed meme coin ($TRUMP) experienced a dramatic 80% collapse since its January launch, leaving supporters with massive losses totaling approximately $12 billion.
The digital token, which initially peaked at $73.43 on January 19, has plummeted to just $11.27, marking a staggering decline from its former $15 billion market value to $2.7 billion by late February.
The downturn affected not only retail investors but also the former president himself, whose personal holdings reportedly decreased by $50 billion. The collapse occurred alongside his wife Melania's cryptocurrency venture ($MELANIA), which has also seen devastating losses, with initial $10,000 investments now worth merely $652.44.
This crypto market turmoil extends beyond Trump-related tokens. Bitcoin, which reached $108,786 on inauguration day, has retreated to $79,844, challenging predictions of reaching $200,000 by 2025.
In response to these developments, California Representative Sam Liccardo is pushing for new legislation. The proposed Modern Emoluments and Malfeasance Enforcement (MEME) Act aims to prevent White House officials and their families from profiting through meme coins.
"Let's make corruption criminal again," Liccardo told ABC News. "Our public offices belong to the public, not the officeholders, nor should they leverage their political authority for financial gain."
The dramatic decline of Trump-themed cryptocurrencies raises questions about the stability of meme coins and their potential risks to investors. Industry experts have previously compared meme coin investments to gambling, warning about their inherent volatility.
As interest continues to decline, the future remains uncertain for both $TRUMP and $MELANIA tokens, serving as a cautionary tale for investors in the volatile world of cryptocurrency speculation.