The so-called "Trump Coin," which features former US President Donald Trump, has suffered a dramatic price collapse, clearly revealing the structural limitations of politically themed meme coins.
Trumpcoin, which once soared to $73 per coin, has now plummeted to around $5, a 93% drop from its peak. While this is a typical meme coin trend, characterized by rapid rises and falls in short periods, this decline is seen as a symbolic example of the vulnerability of tokens that prioritize political narratives.
Upon its launch, Trumpcoin quickly attracted investment demand, capitalizing on "anticipation of a Trump re-election," "anti-establishment financial sentiment," and "unifying political fandom." Marketing efforts, particularly in the run-up to the US presidential election, linked political events to price, fueling speculative sentiment in the market. However, the token structure, which relied solely on narrative without any real utility or revenue structure, collapsed as its upward momentum faded.
Market analysts suggest that the decline was accelerated by liquidity depletion, along with the potential for profit-taking by internal forces holding initial holdings. They explain that the sudden surge in selling pressure, coupled with the sharp decline in trading volume, caused the price defense line to collapse in an instant.
This case once again highlights the fundamental limitations of memetic coins centered on politics, ideology, and personalities. In a structure where prices are tied to the popularity or events of specific individuals, increased volatility is inevitable, and investment decisions are also inevitably subject to information asymmetry and emotional factors.
As the virtual asset market gradually expands into areas of real-world use, such as real-world asset tokenization (RWA), stablecoins, and payment infrastructure, the plunge of Trumpcoin serves as an example of how quickly an asset maintained solely by its narrative can lose credibility.
