The Official Trump cryptocurrency is seeing substantial sell-offs today. The cryptocurrency's token price was down 17.8% over the previous 24 hours of trading as of 5:15 p.m. ET Wednesday.
Trump Official is a meme coin that was launched by President Trump last Friday. While the coin saw an explosive valuation out of the gate, it's been volatile in subsequent trading -- and it's seeing a valuation pullback today as investors weigh its implications for the cryptocurrency space.
The Official Trump cryptocurrency sees an uptick in skepticism
Late last Friday night, Trump published a message on social media announcing the launch of Trump Official, which trades under the "TRUMP" crypto ticker symbol. Trump's wife Melania announced the Official Melania Meme coin just two days later.
Official Trump's market capitalization quickly soared above $10 billion, but it's seen pullbacks as some crypto investors and industry analysts have weighed in with negative commentary and outlooks. While the token got off to an explosive start, concerns have been raised that the new meme tokens from the Trumps make the broader crypto industry look less reputable and could create unexpected headwinds for the space. Despite the pullback today, Official Trump is still up more than 500% since its launch and has a market cap of roughly $7.7 billion as of this writing.
What comes next for Official Trump?
Some investors have been aiming to score big short-term gains with trades centered around President Trump's return to the White House. Take the XRP (XRP -0.52%) token for example, which has risen more than 500% since Trump won the presidential election in November.
XRP investors have been buying up the token in hopes that the change in presidential administration will bring about multiple positive catalysts, including the Securities and Exchange Commission (SEC) opting to drop a securities violations case involving the cryptocurrency. Like XRP, the Official Trump cryptocurrency can be considered part of the recent "Trump trade" movement centered around scoring investment returns in conjunction with the new administration.
But while XRP has wider acceptance and more of a fundamental valuation case, Official Trump is a purely speculative entry in the meme coin category. Trump's presidency could provide catalysts that help push the token's valuation above current levels, but the cryptocurrency is a risky play even among Trump-trade bets.
