Trump concept coins lose billions in market value! Why did WLFI, Trump Coin, and DJT all plummet together?

Recently, digital assets and stocks related to U.S. President Donald Trump experienced a shocking collective plunge, causing investors to lose billions of dollars. Cryptocurrencies like WLFI Token and Trump Coin (TRUMP) saw significant price declines, with Trump Coin dropping from nearly $50 in January to around $8, and WLFI’s market capitalization evaporating by billions of dollars.

Meanwhile, in the stock market, DJT stock plummeted nearly 75% from its peak, with its valuation significantly decreasing. The widespread decline of assets associated with Trump coincides with the overall market correction in the crypto space and also reflects the weak fundamentals and volatile market sentiment surrounding these assets.

Associated Assets Face “Waterloo”: Market Cap Vanishes Billions

Investors betting on Trump-related assets have recently suffered heavy losses. According to data compiled by CoinMarketCap, several top cryptocurrencies and stocks linked to Trump brands experienced a crash, wiping out billions of dollars in market value.

Among them, World Liberty Financial (WLFI) token has fallen over 62% from its all-time high, dropping to $0.1190. Notably, its total market cap also shrank from $7.6 billion to $2.92 billion.

Similarly, Trump Coin (TRUMP) cryptocurrency was not spared. Its price declined from a high of $49 to around $8, with its overall valuation dropping from over $10 billion to approximately $1.5 billion. These staggering figures clearly illustrate the market’s panic-driven sell-off of these high-risk political-themed tokens in the short term.

“Trump Concept Stocks” in the Stock Market: DJT Underperforming

Not only in the crypto market, but in traditional equities, stocks related to Trump have also experienced significant corrections. For example, DJT stock has fallen from a peak of $54 after the election to around $14. Its market cap has shrunk from $11 billion to $3.9 billion.

While the S&P 500 and Nasdaq 100 indices hit all-time highs, DJT stock clearly lagged behind, highlighting investor concerns about its fundamentals and future growth prospects.

Additionally, recently listed American Bitcoin company stock also declined from $14.50 to $4.50, with its valuation dropping from a peak of $8.47 billion to $4.35 billion. The decline in this stock aligns with the downward trend of other Bitcoin-holding publicly traded companies like Strategy, Metaplanet, and KindlyMD. Part of DJT’s decline is also attributed to the continued fall in the stock prices of these Bitcoin reserve companies, as DJT itself holds 35,000 Bitcoins, making it the eighth-largest Bitcoin holder in the industry.

Opportunities in Crisis? Trump Family’s Crypto Gains Exceed $1 Billion

Despite recent asset price crashes causing substantial losses for investors, surprisingly, Donald Trump and his family have already made significant profits from their crypto investments. Even amid this downturn, if the crypto market recovers, they could still realize enormous returns.

According to a recent report by the Financial Times, the Trump family’s net gains from cryptocurrency investments have exceeded $1 billion. These gains mainly come from several tokens:

• WLFI Token: Contributed over $550 million in gains.
• TRUMP Coin: Brought in over $360 million.
• MELANIA Coin: Contributed $65 million.

Additionally, the Trump family has earned ongoing income through partnerships with mainstream centralized exchanges (CEX). It is reported that a major CEX received a $2 billion investment but chose not to accept cash—instead, they involved the Trump family in developing the USD1 stablecoin. Since the company still holds these funds, it generates millions of dollars in interest income for the Trump family.

Market Analysis: Macro Correction and Weak Fundamentals Double Hit

The plunge of Trump-related tokens is not an isolated event; it closely aligns with the recent market-wide correction cycle in the crypto space. Amid panic sentiment, most meme coins—including Pepe, Shiba Inu, and Fartcoin—also experienced sharp declines. As a blend of meme and political concept tokens, WLFI and TRUMP Coin exhibit higher volatility and fragility in this environment.

From a fundamental perspective, the weak performance of DJT stock is also a key factor behind its decline. The company generated only $1 million in revenue last quarter, indicating weak fundamentals that cannot support its multi-billion-dollar valuation. The lack of strong fundamentals makes these assets highly susceptible to market sentiment and macro events. Once enthusiasm wanes or sentiment shifts, their bubbles can burst rapidly.

Conclusion

The collapse of Trump concept assets exemplifies the high-risk, high-reward nature of the crypto market. For investors chasing political-themed or meme tokens, these events serve as a stark warning: blindly pursuing short-term hot spots often leads to neglect of project fundamentals and macro risks. While the Trump family has profited handsomely from these crypto projects, ordinary investors should focus on understanding the intrinsic value and risk exposure of assets rather than relying solely on celebrity influence. Long-term investing requires a more prudent approach to risk management, especially given the market’s ongoing volatility and uncertainty.