Memecoins
Trump meme coins plummet after conviction in stormy Hush-Money case
In a dramatic response to Donald Trump’s recent legal troubles, Trump-themed meme coins have suffered a significant drop in value. After the former president of the United States guilty verdict on 34 crimes, the market showed a strong reaction, highlighting the volatile nature of these niche financial assets. The MAGA coin, which uses the ticker TRUMP, lost a quarter of its value, plunging from $15 to $11 shortly after the verdict. Although it rebounded slightly to $14.50, the initial decline underlines the sensitivity of these assets to political events.
Trump Meme Coins Hit After Guilty Verdict
Meme coins, known for their high volatility and dependence on trader sentiment, have once again demonstrated their susceptibility to sudden price changes based on news events. Other Trump-themed coins also suffered significant losses, with MAGA VP (MVP) down 20%. Super Trump (STRUMP) down 15%, and MAGA Hat (MAGA) down 14%.
STRUMP price drops in the last 24 hours. Source: CoinMarketCap
The market reaction to Trump’s legal issues it also contrasts sharply with the performance of meme coins inspired by current US President Joe Biden (BODEN). Following the verdict, Biden-themed coins saw a surge in value, highlighting how political events can influence cryptocurrency values in different directions.
BODEN price up in the last week. Source: CoinMarketCap.
Meanwhile, not all Trump-themed coins have experienced the same fate. Doland Tremp (TREMP), an intentionally misspelled Trump tribute coin, has remained nearly stable over the past hour. This divergence in performance suggests that while market sentiment has a broad impact on these assets, individual coins may behave differently based on factors such as market perception, liquidity and speculative trading behavior.
Total crypto market cap at $2.4 trillion on the daily chart: TradingView.com
Trump’s stormy legal battle
The repercussions of Trump’s guilty verdict extend beyond the meme coin market. Shares of Trump Media & Technology Group (DJT) on the Nasdaq also saw a significant decline, falling 8% in extended trading.
The case, which alleged that Trump falsified corporate records and paid to bury press coverage of an affair with adult entertainer Stormy Danielsmarks a historic moment as Trump becomes the first US president to be found guilty of a crime.
Stormy Daniels. Photo credit: Markus Schreiber/Associated Press.
Despite the market downturn, Trump maintained his innocence, calling the trial “rigged.” His comments, however, did not temper the market reaction, as evidenced by the plummeting value of Trump-themed meme coins and other financial assets associated with him.
Will Trump’s conviction influence voters?
The contrasting performances of meme coins and different market reactions show how unpredictable meme coin trading can be and how political events can impact finances. The decline in Trump-themed coins following the guilty verdict highlights how closely linked financial markets and politics are, demonstrating the complex dynamics of today’s financial world.
Trump’s nomination for the Republican presidential election is imminent, coinciding with his conviction. Polls show him in a close race with Biden, but there is evidence that a felony conviction could sway voters, with exit polls and polls indicating that a significant portion of Trump supporters will reconsider their allegiance in such circumstances, altering potentially the electoral landscape.
Featured image by AP Photo/Seth Wenig/Pool, chart by TradingView