TRUMP, MAGA, and other Trump-themed tokens crash after election day

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As a seasoned crypto investor with a knack for recognizing trends and patterns, I find myself standing at a crossroads after witnessing the dramatic plunge of Trump-themed meme coins following the U.S. election. The rapid sell-off reminds me of the Dogecoin debacle that unfolded during Elon Musk’s Saturday Night Live appearance in 2021, a stark lesson in the dangers of selling the news.

meme coins related to Donald Trump such as TRUMP, MAGA, TREMP, and STRUMP experienced a significant drop, losing more than 21% of their market value collectively, following Trump’s victory in the recent U.S. election.

The meme cryptocurrency associated with Trump (MAGA) experienced a significant drop of approximately 50.7% over the last 24 hours, trading at around $1.71 during this writing. Earlier on November 6th, the coin’s market capitalization was $212 million, but it has now decreased to $79 million as of this moment.

The MAGA token, modeled after Donald Trump’s famous red campaign hat, experienced a significant drop of 51%, reducing its total value to approximately $39 million in the market.

On November 5th, the cryptocurrency known as Dark MAGA (DMAGA) experienced significant growth, increasing from $0.008 to $0.0018 overnight. However, since the election, DMAGA has fallen by approximately 62%, decreasing its value to $0.0045. This decline resulted in a loss of over $13.5 million from its total market capitalization. In a similar fashion, Super Trump (STRUMP) also experienced a steep drop of 54.9%, causing a loss of around $11 million from its market capitalization.

Some other well-known meme coins that once prospered due to Trump’s presidential win but have currently plummeted are Donald Tremp (TREMP), TRUMPCOIN, TRUMP 47 (47), and Pepe Trump (PTRUMP). These coins experienced significant declines ranging from 50% to 65% at the time of press.

It appears that traders typically sell off when news breaks about meme coins, a pattern frequently seen in these assets. This is similar to what happened with Dogecoin (DOGE), the original and most prominent meme coin in the market.

Today, the value of Trump-related meme tokens is plummeting significantly. It seems like the current news events are causing a sell-off. Here’s how they’re faring:

— IncomeSharks (@IncomeSharks) November 7, 2024

The rapid increase in the value of Dogecoin before Elon Musk’s appearance on Saturday Night Live in May 2021 is often referred to as a situation where traders sell after they have learned about a significant event. This led Dogecoin to reach its highest price ever, $0.73, as people anticipated Musk’s role on SNL, given his strong support for Dogecoin.

Nevertheless, the excitement waned swiftly both during and following the broadcast, causing a flurry of traders to sell off their Dogecoin holdings. Consequently, the price fell more than 30% within just a few hours. At present, the token is still 74% below its record high value.

It appears that this pattern is noticeable in PolitiFi tokens, frequently called “event coins,” because they tend to follow political events. Yet, surprisingly, the decline in their value happens even after Trump’s victory, suggesting that enthusiasm for this particular category of meme coins might be losing steam.

It seems plausible that a significant amount of funds from the PolitiFi tokens are being directed towards Bitcoin (BTC) and other alternative cryptocurrencies. This shift could be due to the surge in Bitcoin’s price, reaching new highs recently, which has sparked optimism among investors that the bull market is resuming.

Notable cryptocurrencies such as Ethena (ENA) and Raydium (RAY) have seen double-digit increases, while the broader meme coin sector has risen by more than 13%. This indicates that the PolitiFi tokens might be experiencing a separate sell-off now that the elections have concluded.

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2024-11-07 11:42