Trump Coin Continues To Lose Ground As Retail Sentiment Sours: Buterin's Warning Adds To Meme Coin Debate

Trump Coin (TRUMP) was down nearly 10% on Friday despite a pro-crypto executive order from President Donald Trump and the U.S. Securities and Exchange Commission (SEC) repealing a rule that discouraged banks from holding digital assets.

The decline came after Ethereum co-founder Vitalik Buterin criticized the rise of political meme coins like Trump Coin.

In a post on X (formerly known as Twitter), he warned that such tokens could become “vehicles for unlimited political bribery.”

He warned of a "new order" in which anyone could create tokens for any purpose, potentially undermining transparency and investor rights in favor of speculative or opaque projects.

Buterin contrasted this with what he called the "old order" under former SEC Chair Gary Gensler, where regulatory pressures penalized assets with clear investor protections while allowing less transparent projects to flourish. 

“Everything that happened in crypto was in part a response, part compliance, part rebellion, to these pressures,” Buterin noted.

On Stocktwits, retail sentiment around Trump Coin retreated to ‘bearish’ territory from the ‘bullish’ zone, a day ago, while chatter remained steady at ‘normal’ levels.

One user admitted selling their holdings at a 50% loss, calling the investment a “mistake.”

Another pointed out the coin’s underperformance relative to the broader market, which rallied on the SEC’s announcement.

Trump Coin is currently trading 55.8% below its all-time high of $75.35, reached ahead of Trump’s inauguration. 

The cryptocurrency has struggled to gain traction since, with declines accelerating after President Trump took office.

Meanwhile, First Lady Melania Trump’s self-titled meme coin, is down nearly 80% after an initial surge post-launch.

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Read also: Bitcoin Holds Steady As SEC Rule Reversal, Trump’s Crypto Policies Counter Japan Rate Hike: Retail Turns Bullish