Retail Investors Sour On Crypto As Trump’s Meme Coins Add To The Chaos

Meme coins have always been divisive, but Trump and Melania’s entry into the space seems to be pushing some retail investors over the edge. 

A recent Stocktwits poll reveals that 31% of retail investors feel that the creation of these meme coins is driving their dislike for the crypto market, among the 77% who are skeptical about Official Trump (TRUMP.X) and Melania Meme (MELANIA.X) tokens.

Many cited concerns about increased volatility (23%) and regulatory risks (23%).

Stocktwits Poll Asking Retail Investors About the Impact Of Trump And Melania's Meme Coins

Only 22% of retail investors favored the meme coins, saying they think it’s a creative use of crypto. 

Meme coins have always been divisive, often dismissed as speculative bets with little intrinsic value. 

However, Trump’s direct involvement has intensified concerns, with critics arguing that a sitting U.S. president launching a cryptocurrency raises ethical and regulatory questions.

Some retail investors have labeled the move a "cash grab," pointing to the lack of clear oversight and the potential for foreign entities to influence policy by purchasing large amounts of the tokens. 

On Stocktwits, one user called Trump’s meme coin launch the “ultimate grift.”

Meme coins have historically thrived on retail hype, with projects like Dogecoin (DOGE.X) and Shiba Inu (SHIB.X) rallying due to strong community backing. 

However, past incidents of rug pulls and pump-and-dump schemes have made investors increasingly wary.

Despite the backlash, Stocktwits data shows that Trump’s meme coin was among the most-watched cryptocurrencies this week, with a 7% increase in retail investors tracking the token.

After an initial surge fueled by speculation, both Trump and Melania meme coins have seen sharp declines despite the president taking measures for the cryptocurrency landscape in the U.S. after his return to the White House.

For instance, Trump signed an executive order on Jan. 23 to create a cryptocurrency working group for proposing new digital asset regulations and exploring the creation of a national digital asset stockpile. 

He even enabled TRUMP to be used to purchase Trump-branded products online on Wednesday.

Even so, the Official Trump token has lost over 22% of its value this week, bringing its market cap down to $5.1 billion.

On Friday, the coin had fallen more than 5%, trading 64.7% below its all-time high of $73.43, which it reached ahead of Trump’s inauguration nearly two weeks ago.

The token has been unable to fully recover since it dropped after Melania Trump launched her meme coin, MELANIA, shortly after the launch of TRUMP.

The First Lady’s token has fallen over 9.2% in the last 24 hours, trading over 84% below its all-time high of $13.05.

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Read also: 100 Days Or Never? Retail Investors Debate Trump’s Potential Bitcoin Reserve Timeline