Donald Trump and Melania Trump meme coins rocketed over the weekend, achieving multi-billion dollar market capitalizations. Nevertheless, some have surged over the past years, and analysts advise that these tokens may decline. Historically, celebrity-themed tokens experience initial surges in value, only to retract once the hype dies down.
According to the Reuters report, the official Trump token for trading now has a total market capitalization of $9.3 billion, and the Melania Trump token has a $1.2 billion additional market capitalization.
The Impact of Whales on Trump Prices
The same pattern has also emerged with other trending meme coins, including Daddy Tate, JASON by Jason Derulo, and JENNER by Caitlyn Jenner. Many meme coins, such as Kekius Maximus and Popcat, follow the pump-and-dump cycle as seen earlier.
They also came across the theory that the stock price can decrease due to the “buy the rumor, sell the news” factor.
Prominent investors are also likely to dump their holdings and cash out, leaving those holding depreciating assets for the average Joe. Something similar was witnessed with the ai16z meme coin, in which top investors dumped out, and other small traders felt the impact.
SEC Policies and Their Potential Impact on TRUMP and MELANIA Tokens
Other factors also show that most existing cryptos often have initial spikes with a subsequent drop. Shiba Inu was trading at $0.000088 in 2021 but is 76% down from this price, Dogecoin is 50% below its highest point, and Floki is 57%.
However, such worries yet again pale compared to the portrayal of the SEC as getting its way toward causing the tokens to crash. However, Gary Gensler has had hope, especially with the anticipation of Paul Atkins and what he can bring forth. Still, there are possibilities that some of Atkins’s policies are not as friendly as anticipated by crypto investors.
Furthermore, the current status of the TRUMP and MELANIA tokens also has no particular driving force anymore, especially given that key exchange platforms such as Binance and Coinbase now list them. The recent increase seems to fall within Wyckoff’s markup phase, whereby assets undergo distribution and then follow a markdown phase once they hit a low level.
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