Tokens and stocks tied to President Donald Trump are extending their declines this weekend as his approval rating sinks to a new low. The Official Trump (TRUMP) meme coin dropped to $2.488, down 32% from its Saturday high. Similarly, the WLFI token fell to $0.057, a sharp drop from the weekend peak of $0.075. These assets have collectively shed billions in market value, even as Trump has generated substantial revenue from them.
The sell-off also coincides with a continued slide in Trump Media & Technology Group (DJT) stock, which closed Friday at $9.10, down sharply from its year-to-date high of $17.10. The decline in Trump-associated assets appears to be driven by waning public support. Recent polling shows Trump's approval rating has plunged to 33%, a record low for his presidency.
Adding to the negative sentiment, traffic to Truth Social, Trump's social media platform, dropped 22% in July to 15.89 million visitors. This suggests that even his most loyal followers are disengaging, a trend that could further undermine the value of his branded tokens.
Political analysts note that these developments, combined with the ongoing US-Iran conflict, could hurt Trump's re-election chances. If he loses, Democrats have indicated they would launch investigations into his crypto ventures. Potential probes could examine whether foreign nationals purchased TRUMP tokens and the implications of such purchases, as well as the operations of World Liberty Financial, which manages the USD1 stablecoin.
Investigations could also focus on the national bank trust charter recently awarded to World Liberty Financial and its ties to Binance, the world's largest crypto exchange. Notably, the UAE holds over $2 billion in cash through the USD1 stablecoin, earning Trump and his family millions annually. These potential legal challenges, coupled with the possibility of Trump leaving office, may make his tokens less attractive to investors.
Meanwhile, concerns are mounting that Trump has profited billions while over a million users have lost money, further dampening sentiment. The tokens are also complicating the passage of the CLARITY Act, a crypto bill that Trump has supported. Democrats insist that any legislation must include provisions barring the president from launching or operating such tokens, a condition Trump is unlikely to accept.
Given these headwinds, TRUMP, WLFI, and DJT stocks are likely to remain under pressure in the foreseeable future. Investors are closely watching political developments and regulatory actions that could impact these assets.
This article is for informational purposes only and does not constitute financial advice.
