Crypto tokens associated with President Donald Trump are plunging this weekend as his approval rating sinks to a new low. Official Trump (TRUMP) meme coin dropped to $2.488, down by 32% from its highest level on Saturday.
Similarly, the WLFI token dropped to $0.057, down sharply from the weekend high of $0.075. These two tokens have all shed billions of dollars in value, even as Trump raked in billions of dollars in revenue.
The ongoing crash has also coincided with the ongoing DJT stock crash. Trump Media stock was trading at $9.10 on Friday, down sharply from the year-to-date high of $17.10.
One main reason behind the ongoing retreat in Trump-associated assets is that his popularity is no longer where it was earlier last year. The most recent polling data shows that Trump’s approval rating has plunged to a record low. For example, a recent poll showed that his approval rating dropped to 33%, a record low.
Another reason why the approval rating dropped is the ongoing traffic to Truth Social, his social media platform. This traffic dropped by 22% in July to 15.89 million in July, a sign that even his most loyal followers are tuning him out.
These events, together with the ongoing US-Iran war means that Trump will likely lose the election. If this happens, Democrats have hinted that they will start their investigations into Trump’s crypto empire.
There are many points to be investigated. For one, they will investigate whether foreigners bought the TRUMP meme coin and the implication. Also, they will focus on World Liberty Financial, which runs the USD1 stablecoin.
The WLFI investigation will be on the recently awarded national bank trust charter. Also, they will investigate its ties to Binance, the biggest crypto exchange in the world. Most notably, there is the fact that the UAE holds over $2 billion in cash through the USD1 stablecoin, which earns Trump and his family millions of dollars a year.
These investigations, and the fact that Trump will be out of office in the next two years, may make his tokens less attractive. At the same time, concerns that Trump made billions of dollars while more than 1 million users lost billions is affecting their performance.
These tokens are also playing a role in hindering the CLARITY Act from becoming law. Democrats have insisted that any law will need to have provisions that bar the US president from launching and running these tokens. Trump will be unlikely to sign a law with such provisions.
Therefore, there is a risk that the TRUMP, WLFI, and DJT stocks will remain under pressure in the foreseeable future.
