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Don’t Be Fooled by Trump-Family Memecoins, the Sell-Off Has Begun

Published

2 месяца ago

20 января, 2025

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President-elect Donald Trump’s inauguration celebration started early this weekend with the release of the TRUMP and MELANIA memecoins, and resulting demand that drove their combined market cap to a high of more than $17 billion dollars, surpassing the value of both shiba inu (SHIB) and the Avalance blockchain’s AVAX.

One might ask how investors had that amount of capital on the sidelines at a time when bitcoin (BTC) was teetering around another all-time high. The truth is, they didn’t. The capital pumping the price of Trump’s token was simply a reallocation from existing memecoins that have buoyed the crypto market over the past year.

While some investors reportedly become overnight millionaires, a nasty sting in the tail may await for investors in the memecoins, which are tokens with no inherent utility whose value is determined purely by market demand. With a price that’s driven by popularity, they’re likely to take a hit when the next shiny new coin comes along.

«Everyone knows this is a grift, this isn’t going to be around in four years and there’s nothing of value here.» prominent scam hunter Coffeezilla said in a YouTube video.

When TRUMP was issued early Saturday, the exodus from the likes of dogecoin (DOGE), shiba inu, pepe (PEPE) and popcat (POPCAT) began.

POPCAT has lost 42% of its market cap since TRUMP launched, SHIB and DOGE are both 15% lower and PEPE is down by 22%. The combined market cap loss from these four tokens alone is $13.5 billion, and that doesn’t include the double-digit declines of WIF, BONK and 100’s of other memecoins.

TRUMP itself took a hit when MELANIA was released, losing 58% of its value and reflecting the fickle nature of speculative memecoins. Together they’re now valued at just $11 billion, with $6.3 billion withering away over the past 24 hours.

It’s worth noting that the market cap of crypto tokens is defined by circulating supply multiplied by asset price. Varying levels of liquidity mean that not all of that supply can be sold at once, so the true market cap figure is actually lower than seems. Even so, a reduction in the market cap of one meme and the increase in another demonstrates capital reallocation.

Retail investors, lured in by stories of overnight millionaires, are particularly at risk. After all, these are tokens issued by the president of the United States. Thousands, if not hundreds of thousands, of retail investors are likely to lose money. Anyone who bought the tokens on Sunday is already 30% in the red.

Quite apart from capital flows, there is also the regulatory issue. Online influencer Hailey Welch said in December that she was «fully cooperating with lawyers» after her HAWK memecoin saw investors losing millions of dollars.

Another risk is copycat tokens, several of which have been created under the names of BARRON and IVANKA, other Trump family members. The majority of the copycat tokens lost more than 95% of value just hours after launch.

Still, one savvy trader saw an opportunity in the fragile nature of TRUMP’s rise, claiming that he shorted the token at $67 and that he would make $2.7 million if it hit $55. TRUMP is now trading at $47.

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GameStop Has $1.5B of Bitcoin Buying Power After Closing Convertible Note Sale

Published

11 минут ago

1 апреля, 2025

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Bitcoin (BTC) purchases from video game retailer GameStop (GME) could be imminent or may have already begun after the company closed on its offering of $1.3 billion of five-year convertible notes.

The $200 million greenshoe option was fully exercised by the initial purchaser, bringing the total amount of the sale to $1.5 billion. Net proceeds to the company after fees were $1.48 billion, according to a filing Monday after the close of U.S. trading.

Alongside its fourth quarter earnings report last week, GameStop — led by its CEO Ryan Cohen — announced full board approval of an update to the company investment policy to add bitcoin to the GME balance sheet.

GME shares rose 1.35% during the regular session on Monday and are up another 0.8% in after hours action. Bitcoin remains modestly higher over the past 24 hours at $84,900.

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OpenAI’s $40B Raise Calms Market Jitters, Sends CoreWeave and AI Tokens Higher

Published

53 минуты ago

1 апреля, 2025

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CoreWeave (CRWV) shares rose more than 38% on their third day of trading debut after raising nearly $1.5 billion from its IPO following OpenAi’s announcement of a record-breaking $40 billion funding round on Monday.

The artificial intelligence (AI) startup went public on the Nasdaq exchange on Friday afternoon. The stock dropped below its IPO price to $39 and ended the day flat at $40 before dropping another 10% on Monday, its first full day of trading. CoreWeave’s IPO came at a time of strong anxiety and uncertainty in global markets, diminishing investor appetite and risk tolerance.

However, investor sentiment towards AI-related stocks seemed to have changed on Tuesday after AI powerhouse OpenAI announced on Monday that it had closed a $40 billion funding round, valuing the company at $300 billion. The move appears to have assured investors that there continues to be a strong appetite for AI companies, even in the current rough market.

This positive outlook has also spread to digital assets, as AI-related tokens were boosted on Tuesday. AI tokens, including Near Protocol (NEAR), Internet Computer (ICP), Bittensor (TAO) and Render (RENDER), were all up over 3% on Tuesday, with RENDER leading the group, trading 7.4% higher. The broader digital assets market, CoinDesk20 Index, also rose 3%.

Meanwhile, the shares of Core Scientific (CORZ), the bitcoin miner and data center with a large partnership with CoreWeave, have also risen more than 9% on Tuesday.

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Crypto Advocate Kristin Smith to Exit Blockchain Association for New Solana Group

Published

2 часа ago

1 апреля, 2025

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Kristin Smith, the longtime chief executive of the Blockchain Association, a leading lobbying group for crypto policy in Washington, is leaving next month to take a role as president of the new Solana Policy Institute, according to a Tuesday announcement.

«I am incredibly proud of what we’ve accomplished together and confident that the organization’s future is bright,» Smith said in a statement.

Earlier this week, Miller Whitehouse-Levine founded the organization and announced his position as CEO shortly after stepping down from the Defi Education Fund.

Though the group hasn’t yet clarified its source of funding, its website said it will focus its message on «how decentralized networks like Solana are the future of the digital economy.»

Smith has led the Blockchain Association for almost seven years — a dramatic period for the developing industry. Since late last year, the political grounds have solidified under the sector’s feet as it finds allies running all levels of the U.S. government, where crypto advocates have long been trying to get a comprehensive set of regulations.

The Blockchain Association has been a central player in the industry’s lobbying.

The organization said its board is now conducting a search to replace Smith.

Whitehouse-Levin once worked in that organization’s policy operations.

«Innovators deserve to have the clarity they need to build a frictionless, Internet-based global economy — a future we believe is achievable with the right laws, rules and frameworks,» he said in a statement during this week’s launch of the Solana group.

UPDATE (April 1, 2025, 19:09 UTC): Adds comment from Kristin Smith.