Steep sell-off in Trump-linked crypto assets raises fresh scrutiny on digital asset space

A steep sell-off in Trump-linked crypto assets is raising fresh scrutiny across the digital asset space, especially after the TRUMP token suffered a staggering 90% collapse.

The concern intensified after data from CoinGecko showed that the Official Trump ($TRUMP) token, a Solana-based meme cryptocurrency backed by the US President, fell to a record low of approximately $2.73 last month and is currently trading at $2.83, down 0.75% in the past 24 hours.

Moreover, as earlier reported by Cryptopolitan, the Trump-backed WLFI token has decreased by more than 19% this week, primarily due to complications arising from its multi-million-dollar self-collateralized loans on the Dolomite platform. 

The WLFI token dropped nearly 75% from its September 2025 peak of about $0.31, while the TRUMP meme coin has plunged by roughly 90% since hitting a high of more than $73 in January 2025.

Trump’s involvement in the crypto ecosystem significantly heightens public anxiety

Concerning the recent token price declines, Professor Tonya Evans, the Founder and CEO of Advantage Evans Global Regulatory Strategies, stated that, “We thought Sam Bankman-Fried or Gary Gensler were the worst things for the crypto industry, and they were terrible. But it turns out it was someone who surrounds himself with yes-men, takes every bit of value for himself, and quickly bankrupts companies and casinos without facing any consequences.” 

Democratic lawmakers serving in the United States Senate, including Elizabeth Warren, Richard Blumenthal, and Adam Schiff, also expressed concerns about Trump’s involvement in the crypto ecosystem.

Their concerns intensified after he released a public statement about an upcoming gala for token holders scheduled for April 25. According to them, the president misused his influence by providing token holders with exclusive access to him.

In an attempt to discover the truth, the three senators wrote a letter to Bill Zanker, the individual behind the introduction of the Trump meme coin, requesting further clarification concerning the objective of the upcoming gala.

In the meantime, Ross Gerber, the co-founder, President, and CEO of Gerber Kawasaki Wealth & Investment Management, earlier issued a statement expressing his belief that introducing these coins around the inauguration period, followed by a sharp rise in meme tokens, diminished investor engagement in the sector.

Gerber explained that, “celebrity-backed meme coins often turn out to be scams or appear like one; either way, regular investors end up losing money while celebrities profit.” According to him, people, deceived by these scams, ultimately suffer losses, as their funds are stolen rather than merely lost. 

Gerber deemed this situation a critical challenge in the sector. He noted that losing money on meme coins often drives people away from crypto for good. Additionally, he stressed that the Trump administration’s lenient regulatory environment for cryptocurrencies diminishes their appeal to everyday investors. 

Upcoming gala for token holders sparks heated debate  

Earlier, analysts observed a rapid price increase in $TRUMP Coin following the announcement of a new project event featuring a keynote address from Trump. This gathering, a Conference & Gala Luncheon, is scheduled to take place at Mar-a-Lago on April 25 this year.

The event is aimed at top TRUMP token holders and will follow the same approach as the private dinner the project hosted last year. Moreover, the organizers behind this occasion hinted that invitations to the luncheon are limited to the top 297 qualifying token holders.

In addition to the main attendees, the event will feature 18 high-profile participants, dubbed “Superstars,” including Donald Trump, who is expected to attend. The development drew inquiries from reporters seeking further details from the organizers.

In response, organizers said the event is designed to deliver exclusive, curated experiences to a select group of participants. As part of these perks, 29 chosen attendees will receive VIP access, including a private tour of the Mar-a-Lago estate.

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