Trump meme craze: 'BIG' token plummets after frenzy, revealing risks

Trump’s one word has shaken the cryptocurrency community. On December 8th, the former U.S. president posted ‘$BIG trouble’ on Truth Social, and instantly a new token called ‘BIG’ appeared, leading to a collective market action rather than mere coincidence.

Market Explosion in an Instant

The ‘BIG’ token, launched via the Bonk platform on the Solana network, rapidly attracted capital. About 5,100 investors flocked in, pushing the market capitalization up to $5.3 million. This was a clear example of the current market dynamics, where even a slight connection to Trump can trigger explosive interest.

Reality Revealed as the Bubble Bursts

However, this enthusiasm did not last long. The market cap of ‘BIG’ plummeted to around $360,000. A loss of over 94% indicates a bubble burst rather than a simple correction. This clearly shows that the popularity of Trump meme tokens relies solely on speculation and hype, without any real value or utility.

Structural Risks of Meme Coins

The rapid rise and fall of ‘BIG’ highlight the inherent issues in the meme coin market. Tokens without tangible use cases are extremely vulnerable to speculative entry and exit. Once market demand wanes, a price collapse becomes inevitable. Investors exposed to such high-risk assets should exercise caution.