A Staggering 96% Wipeout for Trump Coin Investors (Image Credits: Images.fastcompany.com)
The cryptocurrency market entered a turbulent phase in early 2026, with meme coins tied to political figures suffering the most dramatic losses.
A Staggering 96% Wipeout for Trump Coin Investors
An investor who spent $75.35 on the Trump meme coin on January 19, 2025, watched that holding shrink to just 4% of its original value by midmorning trading on Monday.
The token traded at $3.39, according to data from CoinMarketCap. Its market capitalization dwindled to $1.78 billion, a sharp drop from the $14.5 billion peak on the eve of President Trump’s second inauguration. By last February, that figure had already fallen to $3.5 billion. The decline accelerated roughly a year after the coin began losing momentum post-inauguration. Other political meme tokens fared no better, with the Melania coin plummeting about 99% from its high of $13.73 to around 12 cents.
Bitcoin’s Volatility Drags Down the Entire Field
Bitcoin experienced wild swings last week, dipping to nearly $60,000 – a level unseen since 2024 – before partial recovery to around $70,000.
The leading cryptocurrency remained far below its $122,000 peak from last October. Nonpolitical meme coins mirrored this distress. Dogecoin traded above 9 cents after flirting with $1, marking a 25% year-to-date loss and 68% decline since September. Shiba Inu hovered at $0.000006060, down 20% from October highs. Recent weekly losses rippled across the sector:
- Pepe: 13% drop
- Bonk: 16% decline
- Pudgy Penguins: 20% fall
- Pippin: 35% slide
Broader market instability amplified these moves, as Wall Street rode its own waves and silver prices fluctuated between $71 and $115 since January 1.
Trump Family Ties Deepen Crypto Exposure
President Donald Trump’s eldest sons held significant stakes in cryptocurrency ventures amid the downturn.
Eric Trump and Donald Trump Jr. co-founded American Bitcoin, a publicly traded mining and treasury firm, last March. Its stock plunged from $7.40 at launch to $1.28 by Monday midday. The brothers, along with 19-year-old Barron Trump, also launched World Liberty Financial. The Wall Street Journal reported the platform generated at least $1.4 billion for the family since Trump’s reelection, surpassing real estate revenue. Sons of special envoy Steve Witkoff and Commerce Secretary Howard Lutnick ran similar businesses. A White House spokesperson assured no conflicts existed, as these operated independently.
Inherent Dangers of Meme Coin Speculation
Meme coins carried high risks from the start, often resembling rug pulls where early insiders profited at others’ expense.
These tokens typically lacked formal ties to their namesake figures or trends. A lawsuit filed last October accused backers of the Melania coin of a pump-and-dump scheme across 15 cryptocurrencies. The complaint claimed Melania Trump served as unwitting “window dressing” for fraud orchestrated by entities including Meteora and Kelsier. It stated neither she nor her representatives knew of the alleged scam and would not have endorsed it. Investors faced worthless holdings once hype faded.
Key Takeaways
- Meme coins like Trump and Melania tokens lost over 96% and 99% of value, respectively, amid 2026 market chaos.
- Bitcoin’s swings to $60,000 pulled down Dogecoin, Shiba Inu, and others in a broad sell-off.
- Trump family crypto firms raked in billions but saw stocks tumble, highlighting sector volatility.
Crypto’s wild ride underscored the perils of speculative bets, even for high-profile names. As markets stabilize or sink further, investors must weigh hype against hard realities – what lessons will shape the next cycle? Share your thoughts in the comments.
