Donald Trump’s US election victory on Wednesday and the ensuing euphoria failed to spice up the value of Trump-themed memecoins, principally resulting from so-called ‘sell the news’ development. These tokens, which had seen important good points earlier within the week, dropped by double digits following his win.
Some of the favored memecoins shed over 25% in market capitalization only a day after the victory, together with TRUMP, MAGA, and TREMP.
Trump-Themed Tokens Suffer on ‘Buy the Rumor, Sell the News’ Trend
The PoliFi tokens drop occurred regardless of the broader rise within the crypto market following Donald Trump’s victory within the US election. The tokens that have been linked to Trump, amongst others, took a success. The decline certainly did shake investor confidence within the PolitiFi property, with merchants seemingly promoting the news-a sample not too completely different from previous meme coin habits.
Similarly, just like the speedy surge of Dogecoin previous to Elon Musk’s Saturday Night Live look in May of 2021, which peaked at $0.73 and fell over 30% shortly after, political tokens skilled a pointy sell-off following the election hype. For its half, DOGE continues to be 74% under its all-time excessive at present ranges.
This is a part of the “buy the rumor, sell the news” development widespread with event-driven tokens that have a tendency to be prone to political modifications. Despite Trump’s win, the hunch in these meme cash ought to deliver in the conclusion of a potential weak point within the attraction for such meme cash and that a few of their liquidity may be shifting from them.
As a matter of reality, many buyers really appear to be shifting funds into Bitcoin and different altcoins because the flagship cryptocurrency has been making new highs, elevating hopes of a brand new bull market.
Losing Over 25% in Market Cap
Despite the euphoria surrounding Donald Trump’s election victory on Wednesday, Trump-themed memecoins did not maintain their earlier good points, and some fell over 50% within the first hours after outcomes.
These tokens, which had surged main as much as the election, noticed sharp declines, with some losing over 25% in market capitalization only a day after his win. Memecoins like TRUMP, MAGA, and TREMP have been among the many greatest losers, highlighting the volatility typical of those event-driven property.
Trump-Themed Memecoins Drop Over 50% After Election Rally—Is Recovery Possible?https://t.co/qSXjNg02v1
— FX Leaders (@FXLeadersCom) November 7, 2024
Trump-themed meme cash have plummeted since Donald Trump’s election win, with a number of tokens plummeting in value. MAGA, the biggest Trump-themed meme coin by market capitalization, was down 24.26% within the final 24 hours, altering arms at $1.97 at press time, whereas its market capitalization fell from $212 million on Nov. 6 to $87 million. Another outstanding token, MAGA HAT, impressed by Trump’s iconic crimson hat, was additionally down 32.22%, its market cap fallen to $38 million.
The different large loser was Dark MAGA, which blew out on Nov. 5 after which plummeted 20% from the pre-election stage to $0.0048, wiping out upwards of $2.6 million in market cap.
This occurs simply on the proper time, identical to all different meme cash comply with a pointy sell-off after only one peak second. Event-driven tokens, such because the PoliFi cash, are extremely unstable and related with political occasions that are inclined to swing quick and will make them susceptible to appreciable shifts in worth.
Teuta Franjkovic
Teuta is a seasoned author and editor with over 15 years of expertise in macroeconomics, expertise, and the cryptocurrency and blockchain industries.
Starting her profession in 2005 as a way of life author for Cosmopolitan, she expanded into masking enterprise and financial system for a number of esteemed publications like Forbes and Bloomberg.
Influenced by figures like Don and Alex Tapscott and Laura Shin, Teuta embraced the blockchain revolution, believing crypto to be one in every of humanity’s most important innovations.
Her fintech involvement started in 2014, specializing in crypto, blockchain, NFTs, and Web3. Known for her wonderful teamwork and communication abilities, Teuta holds a double MA in Political Science and Law.
Disclaimer: The introduced content material might embody the private opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any duty on your private monetary loss.
