In a dramatic response to Donald Trump’s recent legal troubles, Trump-themed coins have seen a significant drop in value. Following the former US President’s guilty verdict on 34 criminal charges, the market showed a sharp reaction, highlighting the volatile nature of these specialized financial assets. The MAGA coin, which uses the Trump symbol, lost a quarter of its value, falling from $15 to $11 shortly after the ruling. Although it rebounded slightly to $14.50, the initial decline underscores the sensitivity of this asset to political events.
Trump Meme Coins Take a Hit After Guilty Verdict
Meme coins, known for their high volatility and reliance on trader sentiment, have once again proven their susceptibility to sudden price changes based on news events. Other Trump-themed coins also suffered significant losses, with the MAGA VP (MVP) down 20%. Super Trump (STRUMP) is down 15%, and MAGA Hat (MAGA) is down 14%.
The price of STRUMP has fallen in the last 24 hours. Source: CoinMarketCap
The market reaction to Trump’s legal cases also contrasts sharply with the performance of meme coins inspired by current US President Joe Biden (BODEN). Following the ruling, Biden-themed coins saw an increase in value, highlighting how political events can affect cryptocurrency values in different directions.
BODEN price rose last week. Source: CoinMarketCap.
Meanwhile, not all Trump-themed coins met the same fate. The Doland Tremp (TREMP), an intentionally misspelled Trump tribute coin, has remained roughly flat over the past hour. This difference in performance indicates that although market sentiment broadly influences these assets, individual currencies can behave differently based on factors such as market perception, liquidity, and speculative trading behavior.
The total cryptocurrency market cap is $2.4 trillion on daily chart: TradingView.com
Trump’s stormy legal battle
The ramifications of Trump’s conviction extend far beyond the coin market. Shares of Trump Media and Technology Group (DJT) on the Nasdaq also saw a big decline, falling 8% in extended trading.
The case, which alleged that Trump falsified business records and paid money to bury press coverage of an affair with adult entertainer Stormy Daniels, marked a historic moment as Trump became the first US president ever to be convicted of a felony.
Stormy Daniels. Image source: Markus Schreiber/Associated Press.
Despite the market decline, Trump maintained his innocence, calling the trial “rigged.” However, his comments did not dampen the market reaction, as evidenced by the decline in the value of Trump-themed cryptocurrencies and other financial assets linked to him.
Will Trump’s conviction sway voters?
The mixed performance of meme coins and different market reactions shows how unpredictable meme coin trading can be and how political events can impact finances. The decline of Trump-themed coins following the guilty verdict highlights how closely linked financial markets and politics are, demonstrating the complex dynamics in today’s financial world.
Trump’s candidacy for the presidency of the Republican Party became imminent, coinciding with his sentencing. Polls show him in a close race with Biden, but there is evidence that a felony conviction can sway voters, with exit polls and exit polls suggesting a significant portion of Trump’s supporters are reconsidering their loyalty in such circumstances, which could change… Electoral scene.
Featured image by AP Photo/Seth Wenig/Pool, chart from TradingView