Cryptoupdated 52m ago2 min read
Trump-Linked Tokens Fall After Democrats Sweep US Midterms, TRUMP Drops 17%
“Tradable investment assets that helped make the president more than $2bn during his first year in office are collapsing”
“The results could not only make it harder for Trump to push forward his crypto plans but also bring more scrutiny to his family’s crypto businesses.”
This article is an automated aggregation of coverage from news outlets. Our editorials offer in-depth analysis curated by the NewsCord team.
TRUMP token fell about 17% after Democrats won Congress. Bitcoin rallied while Trump-linked tokens led crypto losses following the midterms.
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TRUMP token drops after sweep
Trump-linked tokens led crypto losses after Democrats swept the US midterm elections, with Official Trump (TRUMP) falling 17% over 24 hours to $1.33 and World Liberty Financial (WLFI) dropping over 7% to $0.047, according to CoinMarketCap data cited by Cointelegraph. Democratic victories, including surprise wins in Texas, followed the declines, and the party won control of both the House and Senate from Republicans.
Benjamin Sarquis Peillard, founder and CEO of Cap, told Cointelegraph that investors appear to be treating politically linked tokens differently from other cryptocurrencies, saying, “Bitcoin and other established assets respond to a combination of liquidity, institutional flows and macroeconomic conditions.” Peillard added that politically linked tokens can face selling pressure if investors reassess risk exposure, saying, “those tokens may face selling pressure if investors begin reassessing their risk exposure.”
Market rally, political tokens lag
Bitcoin rose more than 4% over 24 hours to around $80,500 while Ether climbed 6% to $2,433, even as TRUMP and WLFI posted losses. The overall crypto market rose 3.4% to $2.69 trillion, while the political memecoin sector’s total market capitalization fell more than 16% on the day to $477 million.
Trading volume jumped 123% to $437 million, per CoinMarketCap data, as other Trump family-linked tokens such as MELANIA dropped nearly 13% to around $0.066. The Guardian framed the same election-driven repricing as a hit to Trump-linked wealth, saying Trump Media and Technology Group stock was “priced at just over $5 on Wednesday morning” and that World Liberty Financial digital tokens were “trading at less than 5 cents after the election.”
CLARITY Act uncertainty ahead
The election results raised questions about the future of US crypto legislation, including the stalled Digital Asset Market Clarity Act, commonly referred to as the CLARITY Act. The bill failed to advance in the Senate earlier this year after falling short of the 60 votes required, and Democrats were pushing for stronger ethical provisions and safeguards against conflicts of interest involving Trump’s crypto ventures.
Peillard told Cointelegraph that the midterm results introduced “a new layer of regulatory uncertainty,” and he said that uncertainty can have a more immediate impact for politically linked tokens because investor sentiment is tied to expectations around the political environment. Cointelegraph also said the broader industry’s “more important question is whether Congress can establish a durable regulatory framework that provides clarity regardless of which party holds power.”