In a dramatic response to Donald Trump’s recent legal troubles, Trump-themed coins have seen a significant drop in value. Following the decision of the former American president guilty verdict on 34 counts, the market reacted strongly, highlighting the volatile nature of these niche financial assets. The MAGA coin, which uses the ticker TRUMP, lost a quarter of its value, plunging from $15 to $11 shortly after the verdict. Although it rebounded slightly to $14.50, the initial decline highlights the sensitivity of these assets to political events.
Trump Meme Coins Get Battered After Guilty Verdict
Meme coins, known for their high volatility and reliance on trader sentiment, have once again demonstrated their sensitivity to sudden price changes based on current events. Other Trump-themed coins also suffered significant losses, with MAGA VP (MVP) falling 20%. Super Trump (STRUMP) down 15%, and MAGA Hat (MAGA) down 14%.
STRUMP price drops in the last 24 hours. Source: CoinMarketCap
The market reaction to Trump’s legal problems also stands in stark contrast to the performance of meme coins inspired by current US President Joe Biden (BODEN). Following the verdict, Biden-themed coins saw an increase in value, highlighting how political events can influence cryptocurrency values in different directions.
BODEN price up in the last week. Source: CoinMarketCap.
Meanwhile, not all Trump-themed plays met the same fate. Doland Tremp (TREMP), an intentionally misspelled Trump tribute coin, has remained almost flat over the past hour. This divergence in performance suggests that while market sentiment has an overall impact on these assets, individual coins may behave differently based on factors such as market perception, liquidity, and speculative trading behavior.
Total crypto market cap at $2.4 trillion on the daily chart: TradingView.com
Trump’s heated legal battle
The repercussions of Trump’s guilty verdict extend beyond the coin market. Shares of Trump Media & Technology Group (DJT) on the Nasdaq also saw a significant decline, falling 8% in extended trading.
The case, which alleged that Trump falsified business records and paid to bury media coverage of an affair with adult performer Stormy Danielsmarks a historic moment as Trump becomes the first American president to be convicted of a crime.
Stormy Daniels. Photo credit: Markus Schreiber/Associated Press.
Despite the market slowdown, Trump maintained his innocence, calling the trial “rigged.” His comments did not dampen the market reaction, however, as evidenced by the plummeting value of Trump-themed coins and other financial assets associated with him.
Will Trump’s conviction influence voters?
The mixed performance of meme coins and varying market reactions show how unpredictable meme coin trading can be and how political events can impact finances. The fall of Trump-themed coins following the guilty verdict highlights how closely financial markets and politics are intertwined, demonstrating the complex dynamics of today’s financial world.
Trump’s nomination for the Republican presidential nomination is imminent, coinciding with his conviction. Polls show him in a tight race with Biden, but there is evidence that a felony conviction could sway voters, with exit polls and surveys indicating a significant portion of Trump supporters are reconsidering their allegiance in such circumstances, potentially changing the electoral landscape.
Featured image by AP Photo/Seth Wenig/Pool, chart by TradingView
