Market in freefall
The head of the deVere Group poured cold water on the initial market frenzy surrounding Donald Trump launching his $TRUMP meme coin ahead of his inauguration, warning it was “more gambling than investing.”
According to uk.investing.com on Sunday, the $TRUMP meme coin’s value spiked by more than 11,000% since its Friday rollout. However, the price has since tanked by more than 50%, falling from $75 to $30, at the time of writing.
The drop came shortly after Trump’s wife Melania anounced the launch of her own coin during a pre-inauguration speech. While many now rush to invest in it, DeVere CEO Nigel Green strongly advised investor caution, citing previous crash-and-burn meme coin frenzies.
Warnings amid excitement
Green referred to the meme coin trends in 2021 and 2022. The financial services professional stated “young, inexperienced investors got burned by extreme volatility.”
not the same as investing in sound assets.”
“Gambling is not the same as investing,” Green warned, stating acquiring $TRUMP coins was “not the same as investing in sound assets.”
The industry expert suggested those who decided to buy coins like this “need to have a sound, diversified, long-term plan in place first.”
The exec’s caution comes from the speculative nature of the meme coin market where, while major profits can get realized, the rapid swings in value make it unpredictable and risky.
World holds its breath
Green’s caution, however, comes amid great excitement on social media over Donald Trump’s return to power and his embrace of crypto. Trump will officially take office on Monday following his inauguration.
Cryptoinsightuk surmised on X that the launch of $TRUMP meant that “America is about to full send on crypto” and that the “financial world is about to get crazy.”
Only last week, Thailand announced it was looking to trial crypto as a valid payment option, giving Trump’s return as President as the main motive.