The Value of Trump's Meme Coin Keeps Plummeting

Is that good?

Meme Team

President Donald Trump's dubious meme coin just keeps sliding.

Trump's "official" crypto venture has lost about thirty percent of its value over the last seven days, and is down well over 50 percent since it was coined days before the inauguration.

The latest dip seems at least in part due to Trump's tariffs on Mexico, Canada, and China, which kicked off a trade war and spooked investors into ditching volatile assets (the tariffs aimed at Mexico have since been delayed by a month).

Whether its continuous demise matters at this point is unclear. As Reuters reports, Trump's meme coin extracted an estimated $100 million in trading fees alone from his supporters, which ended up in the pocket of an entity Trump owns called CIC Digital.

But it's not just Trump's personal cash grab that's sliding. Other popular meme coins, including billionaire Elon Musk's favorite dogecoin, are also posting major losses.

"Every coin that recently rallied through January, including memes like [dogecoin], have essentially handed back most of their gains," trading platform Crypto Valley Exchange CEO James Davies told  CNBC.

The downward trend highlights a glaring discrepancy between Trump's isolationist saber rattling and the ethos behind cryptocurrencies and the free flow of digital assets.

"Crypto is fundamentally about freedom to make and conduct trades, which runs counter to the global political narrative of the last week," Davies told CNBC. "As a community, we are pro free-trade... when that is being restricted, many investors are risk-off in terms of their holdings."

Biggest Loser

Whether Trump even understands the highly volatile asset is a bit of a mystery. The president's previous comments suggest an extremely limited degree of knowledge.

"I don't know much about it other than I launched it," Trump told reporters last week. "I heard it was very successful, I haven't checked it."

Apart from extracting value from his supporters and inspiring plenty of imitators, Trump's meme coin also greatly irked cryptocurrency execs, who argued that the scheme undermined the tech's reputation just when they were poised for success.

Trump's and his wife Melania's meme coins "cost the US, the presidency and his family a lot of credibility," investment provider VanEck director of digital-asset strategy Gabor Gurbacs told Bloomberg at the time.

Meanwhile, major cryptocurrency Bitcoin also dropped below $100,000 for the first time in roughly two weeks over the weekend, though it's since recovered.

Trump's son Eric, meanwhile, told Reuters that his father's meme coin is "currently the hottest digital meme on Earth."

"We are just getting started," he added.

More on the meme coin: Trump’s Meme Coin Is Down 64 Percent From Its High