The Official Trump meme coin has experienced a significant crash, losing 50% of its value in just two days as large holders, or whales, offload their positions for profit.

Whales Drive the Crash

Massive profit-taking hits TRUMP token
The Official Trump token dropped to $38.50, a steep decline from its recent peak. This sell-off has reduced the coin's market valuation to approximately $7.6 billion. Data from Nansen reveals that the most profitable whales have sold most or all of their holdings:

• The top wallet made $57 million in profit and still holds unrealized gains of $13 million, indicating expectations of a recovery.
• The second-largest wallet earned $53 million but has completely exited its position.
• Another wallet profited $34 million and has sold 84% of its tokens.

Declining Holder Numbers

Retail investors left holding the bag
According to CoinCarp, the number of Official Trump token holders has dropped from 847,335 to 832,200 in just one day. This decline underscores the risks retail investors face when whales cash out, leaving them to absorb the losses.

Meme Coin Patterns and Risks

Following a familiar trajectory
The sharp decline of the Official Trump token reflects a common pattern for meme coins: an initial surge fueled by FOMO (fear of missing out), followed by a dramatic crash. This trend has been seen in other tokens, such as:

• Popcat: Peaked at $2.10 in 2024 before crashing by 78%.
• Kekius Maximus: Dropped 92% after Elon Musk's brief endorsement.
• Shiba Inu and Dogecoin: Both remain significantly below their all-time highs.

Legal Risks for Meme Coin Promoters

Potential lawsuits on the horizon
The ongoing crash of the Trump tokens could expose promoters to legal risks. Crypto endorsers have faced lawsuits for token crashes in the past, as seen with Hawk Tuah Girl’s $HAWK meme coin. If retail investors allege fraud or manipulation, the Trump tokens could become the subject of similar legal action.

The Future of Official Trump and Meme Coins

Volatility and uncertainty ahead
While some whales retain hope for a recovery, the steep decline and dwindling holder numbers cast doubt on the Official Trump token's long-term prospects. As history has shown, meme coins often face dramatic price swings, leaving investors at the mercy of market volatility.