Even After Holding a Gala Show... Trump Memecoin 'Plunges' Despite His Direct Appearance

▲ Trump Coin (TRUMP)/ChatGPT Generated Image

Despite Donald Trump hosting an exclusive gala event for high-net-worth investors, the price of the memecoin symbolizing him continues to fall amidst investor disappointment, receiving a harsh evaluation from the market.

According to crypto media outlet Cointelegraph on April 26 (local time), the price of MAGA (TRUMP) continues its downward trend despite Trump's supportive actions, failing to recover buying momentum. Trump hosted a lavish dinner at his Mar-a-Lago resort, inviting buyers of his NFTs, but the memecoin market reaction was cold. This event aimed to convey a crypto-friendly political message but failed to drive an actual price rebound.

High-net-worth investors who had heavily purchased Trump's mugshot NFTs attended the event, showcasing their influence. Trump reassured his supporters by promising deregulation and promotional policies for the virtual asset industry. He declared, "We will create every environment for virtual assets to continue to innovate within the United States." However, despite his favorable remarks, profit-taking sell-offs flooded the market, leading to continued price drops.

According to Arkham data, the value of virtual asset wallets linked to Trump also decreased alongside the memecoin's decline. Trump's portfolio, once exceeding $10 million, has recently fallen to approximately $8 million. In particular, large whales holding a significant portion of TRUMP's supply liquidated their holdings starting from the event, increasing downward pressure.

Experts point to the fundamental volatility and lack of liquidity inherent in memecoins as the cause. Memecoins lack practical use cases and heavily rely on short-term sentiment changes influenced by political events. Regardless of Trump's political standing, the complex interplay of speculative forces exiting the market and a contraction in the virtual asset market is at play. Investors are maintaining a cautious stance, preparing for further potential declines.

Currently, the TRUMP price has fallen by 50.5% from its peak and stands at the precipice of further decline. Within the community, there is clear disappointment that the gala event did not produce the expected price boosting effect. The future impact of political variables on the price remains uncertain. Market participants are focusing on risk management, closely monitoring changes in trading volume and the flow of funds from large wallets.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.*