Why Did TRUMP Memecoin Stall After WLF’s Major Buy Announcement?

Miami, June 7, 2025 - The official Trump memecoin, backed by the Trump family’s World Liberty Financial (WLF), saw a fleeting 6.4% price spike to $10.38 before settling at $10.10, despite Eric Trump’s June 6 announcement that WLF plans to acquire a substantial position for its long-term treasury. The muted market response has puzzled investors, especially given the coin's ranking of 45th by market cap at $2.03 billion and its 8.65% decline over the past 30 days.

The lackluster reaction follows a string of controversies, including the shelved Official Trump Wallet launch, raising questions about investor fatigue and the coin’s credibility. As WLF aims to bolster the TRUMP memecoin, the market’s tepid response suggests deeper challenges for the Trump-branded cryptocurrency.

Market Skepticism Overshadows WLF’s Plans

Eric Trump’s announcement was expected to ignite enthusiasm for the TRUMP memecoin, yet the coin’s brief surge quickly faded. Crypto commentators have expressed skepticism, noting that the news failed to drive a sustained rally, with trading volume dropping 12% to $180 million daily. The coin’s struggles may stem from recent controversies, particularly the June 3 fallout over the unauthorized Official Trump Wallet launch with Magic Eden, which Eric Trump swiftly disavowed.

This incident, coupled with a Senate probe into WLF’s revenue model directing 75% of proceeds to the Trump family, has fueled distrust among investors, potentially dampening the impact of WLF’s planned acquisition.

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Investor Fatigue and Market Dynamics

The TRUMP memecoin’s inability to sustain momentum reflects broader investor fatigue in the memecoin sector, where hype often outpaces fundamentals. Despite a $2.03 billion market cap, the coin has lost 86% from its $15 billion peak in April, with 813,294 wallets facing $2 billion in losses. The exclusive dinner for the top 220 holders on May 23 sparked a 50% price surge but failed to maintain long-term momentum.

Meanwhile, competing memecoins like $DOGE and $MELANIA, the latter at a $2.01 billion market cap, have shown stronger weekly gains of 5% and 8%, respectively. The TRUMP coin’s 8.65% monthly decline suggests investors may be wary of further volatility, even with WLF’s backing.

Did You Know?
The TRUMP memecoin’s $2.03 billion market cap surpasses that of 90% of cryptocurrencies, yet its 80% insider ownership raises concerns about market manipulation risks.

Can WLF’s Strategy Revive TRUMP’s Appeal?

WLF’s commitment to acquiring a significant TRUMP memecoin stake aims to position it as the “most exciting MEME on earth,” as Eric Trump stated. However, the coin faces hurdles, including regulatory scrutiny and a crowded memecoin market with over $50 billion in total capitalization. The Trump family’s broader crypto ventures, including WLF’s $1 billion token sale and Donald Trump Jr.’s upcoming official wallet launch, could bolster confidence.

Yet, with 80% of TRUMP’s supply held by Trump-affiliated entities, concerns about centralization persist. As Eric Trump pushes a pro-crypto narrative, citing global Bitcoin hoarding at the Consensus conference, WLF’s success in revitalizing the coin will depend on restoring investor trust and delivering tangible utility.