The crypto industry has been a crucial issue in the campaign for the November US presidential election. This year, presidential candidates have embraced cryptocurrencies to gain industry support. As a result, the community took advantage of the momentum with Memecoins.
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PolitiFi tokens, a new memecoin category inspired by political figures, performed remarkably well this second quarter. Trump-inspired tokens have been the talk of the town after the Republican candidate began endorsing cryptocurrencies. However, these memecoins have seen a massive 30% drop in the last 24 hours.
An official DJT token?
On Monday, Pirate Wires’ X account announced the launch of an official ‘Trump Coin’. According to the report, the token is allegedly led by Trump’s 18-year-old son, Barron Trump. “According to conversations, Trump is launching an official token – $DJT on Solana, led by Barron,” the post read.
Mike Solana, CMO of Founders Fund and Editor-in-Chief of Pirates Wires, shared a smart contract address apparently linked to the token. Furthermore, he stated that he was “only reporting” what he knew “through sources” and that he “did not speak directly to Trump.”
Likewise, Martin Shkreli stated that the DJT token is real in an X Space. He later maintained his position, highlighting the “confirmation” from a friend of Barron Trump. In one post, the 17-year-old stated: “$DJT IS THE ONLY REAL TRUMP TOKEN.”
However, the crypto community remains skeptical about the authenticity of memecoin. Several users highlighted several red flags surrounding the “official” token, including DJT’s X account.
One user pointed out that the official X account has a “weird” list of followers. This list includes controversial figure Andrew Tate, American streamer Adin Ross and Shkreli.
Additionally, crypto analytics firm Bubblemaps revealed that 67% of the token supply was in a cluster. Raydium Concentrated Liquidity is the largest holding, accounting for 43% of the supply.
Many community members expressed their concerns with humor. Some users suggested that serial scammer Sahil Arora, responsible for several celebrity memecoins rugs, orchestrated the token launch. Others wondered whether inconsistencies in the release made it “more or less likely” that it was a Trump family business venture.
At the time of writing, no official sources have confirmed Trump’s involvement with the DJT token.
Trump Memecoins Plummets
More than a month ago, former US President declared he was “fine” with cryptocurrencies and wanted to make it a “solid” industry with clear regulations. At the time, memecoins inspired by Trump soared by more than 63% after his statements. Furthermore, the PolitiFi sector has grown, with tokens like BODEN increasing by almost 30%.
However, this time the story is different as rumors of an official Trump token have negatively impacted the performance of memecoins. PolitFi tokens report a 30% decline in the last 24 hours with a market cap of $1.03 billion.
Trump-related tokens suffered the most in the sector. Many dropped between 20% and 30% in the last day. MAGA (TRUMP), the largest token related to the former US president, saw its price drop almost 50% in four hours.
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Following the “Trump coin” rumors, TRUMP knocked down from the $10.8 price range to $5.6 before recovering below the $7 mark. At the time of writing, the token was trading at $6.94, a decline of 38.7% in the last 24 hours.
Similarly, Trump Mania (TMANIA), Super Trump (STRUMP), and Doland Tremp (TREMP) suffered a price drop of 35.2%, 20%, 37.6%.
Featured image from Unsplash.com, chart from TradingView.com