November 7, 2024 – Trump-themed memecoins have experienced a dramatic crash in value following Donald Trump’s election win on Wednesday, November 6, 2024, despite their strong performance leading up to the election. Tokens such as TRUMP, MAGA, TREMP, and STRUMP have all seen double-digit declines, with their collective market capitalization falling by 21% the day after Trump’s victory.
Key Memecoins Hit Hard
The largest Trump-themed meme coin, MAGA, saw its value plummet by 50.7% over the past 24 hours. It was trading at just $1.71 at press time, a steep drop from its value of $212 million on November 6, now down to a mere $79 million.
MAGA HAT, another prominent memecoin inspired by Trump’s iconic red campaign cap, also collapsed, losing 51% of its value and seeing its market cap fall to $39 million.
Dark MAGA, which had enjoyed a surge on November 5, skyrocketing from $0.008 to $0.0018, has since experienced a steep 62% drop. The coin now trades at $0.0045, wiping out over $13.5 million from its market cap.
Super Trump (STRUMP) followed the trend with a 54.9% decline, losing $11 million in market cap within just two days. Other Trump-themed coins, such as Doland Tremp, TRUMPCOIN, TRUMP 47, and Pepe Trump (PTRUMP), also suffered sharp losses, with their values dropping between 50–65%.
The Rollercoaster of Memecoins
The drastic drop in these memecoins is part of a familiar pattern for PoliFi tokens, a category of cryptocurrencies inspired by political figures or events. These tokens are particularly vulnerable to sharp sell-offs once the anticipated event has passed, a trend often seen with memecoins tied to election cycles.
Before the crash, the Trump-themed memecoins saw a surge in value, particularly on election day, when the odds of Trump securing a victory rose on platforms like Polymarket. This surge was fueled by growing optimism about Trump’s chances in the election, driving a speculative frenzy among traders and investors.
The Nature of PoliFi Tokens
These Trump-themed tokens, along with other PoliFi coins like JOE BODEN (inspired by Joe Biden) and Kamala Horris (based on Vice President Kamala Harris), are volatile by nature. Their value is heavily tied to political events and can swing dramatically depending on developments in the political landscape. This inherent volatility makes them highly speculative and risky investments.
What You Need to Know
- Memecoins are notorious for sharp price fluctuations, and the crash following Trump’s election win is just the latest example of their instability. Traders are warned that PoliFi tokens can experience double-digit losses in short periods.
- Despite the volatility, these tokens are popular among traders looking to capitalize on political events, though their speculative nature makes them risky.
- As with all memecoins, experts advise only investing amounts that one can afford to lose, given the unpredictable swings in value.
The crash of Trump-themed memecoins serves as a stark reminder of the risks associated with event-driven tokens, as they can experience significant price drops once the anticipated event has concluded. For now, investors in the PoliFi space are left to reconsider their positions as the post-election landscape unfolds.
