Key Takeaways:
TRUMP meme coin fell 32% to $2.49 this weekend and WLFI dropped to $0.057 as Trump's approval rating sank to a record low of 33%.
The retreat tracks a collapse in Trump's political standing. A recent poll put his approval rating at 33%, a record low, while traffic to Truth Social, his social media platform, fell 22% in July to 15.89 million visitors, a sign even his most loyal followers are tuning out.
Trump Media (DJT) stock traded at $9.10 on Friday, down from a year-to-date high of $17.10. The selloff has erased billions of dollars in value across Trump-linked assets even as the president's crypto ventures generated billions in revenue.
If Democrats win the election, they have signaled investigations into the TRUMP token's foreign buyers, World Liberty Financial's national bank trust charter, its ties to Binance, and the USD1 stablecoin, which holds over $2 billion in UAE cash that earns the Trump family millions a year.
Political risk weighs on Trump-linked tokens
The investigations, combined with Trump being out of office within two years, may make his tokens less attractive. Concerns that Trump made billions while more than 1 million users lost billions are also weighing on performance. The slide follows a pattern seen across political meme coins, where liquidity and bids vanish quickly once the underlying hype fades.
CLARITY Act hangs in the balance
These tokens are also hindering the CLARITY Act from becoming law. Democrats have insisted any law must bar the US president from launching and running such tokens, a provision Trump would be unlikely to sign. The standoff leaves the broader crypto market's regulatory path uncertain.
The ongoing US-Iran war adds to the political headwinds, raising the odds Trump faces a difficult election. If Democrats gain power, the investigations could freeze growth in World Liberty Financial's stablecoin business, trigger redemptions, or force structural changes to the USD1 structure.
Therefore, TRUMP, WLFI, and DJT stock are likely to remain under pressure in the foreseeable future.
This article is for informational purposes only and does not constitute investment advice.
