TRUMP Meme Coin Warning: Analyst Suggests Investors Look Elsewhere
TL;DR
- Official Trump (TRUMP) soared above $70 before dropping to around $50, facing competition from Melania Trumps meme coin.
- One market observer suggests people should focus on recovering altcoins instead of TRUMP at current levels.
Focus on These Cryptocurrencies
The past weekend was far from quiet for the cryptocurrency industry, with Donald Trump launching his meme coin, Official Trump (TRUMP).
The asset experienced a spectacular price explosion shortly after going live, with its market capitalization briefly skyrocketing above $14.5 billion. Thus, it flipped well-known memes such as Shiba Inu (SHIB). In the past several hours, TRUMP lost some steam, and its market cap has decreased to around $9.9 billion (per CoinGeckos data). For its part, SHIB outpaced it and became the second-biggest in the meme coin niche again.
The impressive rise of TRUMP benefited some savvy traders, who made millions of dollars by jumping on the bandwagon at the right time and eventually cashing out.
Despite its potential to make people rich overnight, some analysts think it makes no sense to buy TRUMP at its peak levels. One person sharing that thesis is the popular X user Michael van de Poppe, who also recommended that people focus on altcoins that crashed by approximately 20% over the weekend.
Some examples include Binance Coin (BNB), Dogecoin (DOGE), Shiba Inu (SHIB), and others. It is worth mentioning that Michael van de Poppe issued the warning on January 19. Since then, the aforementioned assets have charted significant gains, and most of them are currently in green territory.
Their solid performance aligns with the overall bullish environment reigning in the entire cryptocurrency space. As CryptoPotato reported earlier today, Bitcoin (BTC) hit an all-time high of almost $110,000. Its peak occurred mere hours before Donald Trumps inauguration as Americas 47th President.
TRUMPs Decline
The tokens price started heading south shortly after Melania Trump (the wife of the upcoming American president) launched a meme coin of her own. Recall that TRUMP peaked above $70, but currently, it is worth around $50 (per CoinGeckos data).
Investors should keep in mind the extreme volatility surrounding assets of that type and enter the ecosystem with increased caution. They must also be aware that 80% of TRUMPs total supply is held by two entities related to the Republican: CIC Digital LLC and Fight Fight Fight LLC.
Such centralization allows the controlling companies to influence the coins market performance, especially in the event of a massive sell-off.
The post TRUMP Meme Coin Warning: Analyst Suggests Investors Look Elsewhere appeared first on CryptoPotato.
Read more: https://cryptopotato.com/trump-meme-coin-warning-analyst-suggests-investors-look-elsewhere/
Text source: CryptoPotato
