Trump Coin Crash: Over 85% Drop Shocks Crypto World

The Trump Coin crash has sent shockwaves through the meme coin market. Once hailed as a revolutionary meme token, TRUMP has now lost over 85% of its value since its January 2025 peak. Investors who rode the early wave saw massive gains—but those who joined late are now nursing heavy losses. This crash highlights the unpredictable nature of meme coins and raises serious questions about their long-term role in crypto investing.

What is the Trump Coin Crash?

The Trump Coin crash refers to the dramatic decline of TRUMP, a meme coin launched ahead of Donald Trump’s second inauguration in January 2025. Initially priced at $0.01, the coin skyrocketed to an all-time high of $75.35 within 24 hours, reaching a market cap of over $27 billion.

Backed by Trump-affiliated entities and hyped aggressively across social media, TRUMP saw explosive demand. However, its rise was built more on speculation than utility. And just days after the launch, TRUMP’s momentum collapsed when Melania Trump released her own meme coin—$MELANIA, triggering panic among investors.

Why the Trump Coin Crash Matters in 2025

Billions Lost in Market Cap

As of June 2025, Trump Coin is trading at roughly $11, down more than 85% from its peak. The market cap has shrunk to around $11 billion, wiping out over $16 billion in investor wealth in just a few months.

Investor Confidence Shattered

The speed of the Trump Coin crash has raised red flags about meme coin volatility. Many investors, especially retail traders, were attracted to TRUMP by celebrity endorsements and political branding—rather than underlying value or use case.

Fueling Regulatory Fire

This event has intensified discussions around crypto market manipulation, particularly in the meme token space. Some experts have compared the situation to pump and dump crypto schemes, where early investors exit at inflated prices, leaving others with heavy losses.

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Top Insights from the Trump Coin Collapse

Trump Coin’s Fast Rise

• Launched Jan 17, 2025

• Market cap hit $27B in 24 hours

• Promoted on Truth Social and other platforms

• Tied to Trump-affiliated entities (CIC Digital LLC, Fight Fight Fight LLC)

Melania’s Coin Triggered the Fall

• $MELANIA launched Jan 20, 2025

• Immediate 40% drop in TRUMP value

• Investors panicked over conflicting coin launches

• Highlighted lack of coordination and market maturity

Long-Term Viability in Doubt

• No clear utility or project roadmap

• Investor trust significantly eroded

• Public sentiment turned skeptical

• Compared to past failed meme tokens

What to Watch Next

Watch for Regulatory Moves

Expect increased scrutiny from U.S. regulators regarding celebrity-backed crypto tokens. The Trump crypto token fiasco might trigger policy shifts or new legal challenges.

Learn from This Crash

If you’re exploring meme coins or high-risk assets, always assess:

• Who is promoting it

• Whether it has real utility

• How transparent the development team is

Check out our guide on how to evaluate meme coins [(internal link suggestion)].

Stay Updated with Trusted Sources

Keep an eye on top crypto publications  for up-to-date analysis and market reactions to events like this.

What the Trump Coin Crash Teaches Us

The Trump Coin crash is a case study in meme coin mania gone wrong. While early investors may have profited, the vast majority are now left holding devalued tokens with unclear futures.

This event reminds us of a basic truth: hype is not a substitute for value. As we move forward in 2025, smart investors will avoid emotional trading and stick to assets with real fundamentals.

Frequently Asked Questions :

1. What is Trump Coin and why did it gain popularity?
   Trump Coin is a meme-based cryptocurrency launched in January 2025, backed by Trump-affiliated entities and promoted heavily on social media, leading to its initial explosive rise.

2. Why did Trump Coin crash by over 85%?
   The crash was triggered by the launch of Melania Trump’s $MELANIA coin, sparking a massive sell-off and loss of investor confidence.

3. Is Trump Coin still being traded in June 2025?
   Yes, TRUMP is still trading but at a significantly lower value — around $11, down from its peak of $75.35.

4. What concerns have been raised about Trump and Melania’s involvement in crypto?
   Ethical concerns include possible conflicts of interest and allegations of market manipulation due to the dramatic price swings after personal endorsements.

5. What lessons should investors learn from the Trump Coin crash?
   The Trump Coin saga emphasizes the importance of due diligence and caution when investing in speculative assets with no clear utility or regulation.