Meme coins are fun when they first launch. There's usually a massive amount of buzz surrounding them, and the coin immediately soars in value. But as soon as the hype dies out, the coin crashes in value, never to recover again.
That's a painful lesson, but one that investors in the Official Trump (TRUMP 4.80%) meme coin should keep in mind. Most likely, it's already too late to make any type of profit buying and selling this coin, and here's why.
Is TRUMP up 557% or down 90%?
Admittedly, if you look on CoinMarketCap, you might be a bit confused about what's happening with the TRUMP meme coin right now. Year to date, it's up a whopping 557%. By way of comparison, Bitcoin (BTC 3.05%) is only up 15% for the year so you might think you've found a real winner.
Image source: Getty Images.
But dig a little deeper, and it's clear what's happening. The TRUMP meme coin is actually down 90% from its all-time high of $75.35.
CRYPTO: TRUMP
Key Data Points
Take a look at the coin's chart. It launched in the evening on Friday, Jan. 17, and first traded around $1.20. By the end of the weekend, it had already hit its all-time high of $75.35. By the time the inauguration rolled around on Jan. 20, it was already starting to trend down. Within 24 hours of the inauguration, the meme coin had already lost 20% of its value, as early investors quickly sold their crypto. Since then, it's been a quick descent downward.
No surprises here. It's the classic meme coin cycle. There's hype and buzz as a cryptocurrency soars in value, attracting many investors along the way. The hype dies out, and the coin crashes, never to recover again. Unfortunately, that appears to be what is happening with the TRUMP meme coin. For now, I'm avoiding it and looking elsewhere for upside.
