Ross Gerber Slams Trump And Melania Memecoin Hype For Spooking Crypto Investors: 'Money Doesn't Come Back'

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Ross Gerber, CEO of Gerber Kawasaki Wealth & Investment Management, said the caller slump successful Bitcoin (CRYPTO: BTC), arsenic the broader crypto marketplace struggles a twelvemonth into Donald Trump's presidency, whitethorn beryllium driven by the accelerated emergence of speculative meme coins.

In an interrogation with Business Insider, published connected Thursday, Gerber suggested that the instauration and consequent popularity of Official Trump (CRYPTO: TRUMP) and the First Lady-themed Official Melania (CRYPTO: MELANIA) meme coins person made investors cautious of integer assets. He argues that these meme coins, often backed oregon introduced by celebrities, effect successful mean investors losing wealth portion the personage promoters profit.

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He said that investors often leap into specified tokens believing the hype, lone to get burned, adding that the “money doesn’t travel back,” and is efficaciously "stolen" from them.

He besides pointed to different celebrity-backed cryptocurrencies, including a token launched by erstwhile New York City politician Eric Adams and the $HAWK coin introduced by net property Haliey Welch, arsenic further examples of meme coins that person led to capitalist losses.

Gerber besides criticized the Trump administration’s lax attack to crypto regulation, which helium believes is making the marketplace less attractive to mundane investors.

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Gerber’s disapproval comes arsenic Bitcoin has fallen astir 50% from its October peak, dropping beneath its November 2024 level, with an aboriginal February sell-off triggering implicit $2.7 cardinal successful liquidations, its sharpest diminution since 2022, according to algorithmic trading steadfast Wintermute.

The downturn followed respective macro catalysts, including Kevin Warsh's information arsenic Fed chair, anemic "Magnificent Seven" net and a correction successful precious metals. Wintermute said superior has rotated heavy into AI-focused equities, leaving crypto underperforming successful some marketplace rallies and sell-offs, a inclination emblematic of carnivore markets.

Over the past month, the Melania Trump-themed meme coin slumped 36.11%, portion temporarily gaining momentum astir the merchandise of the Amazon MGM documentary, MELANIA, astatine the extremity of January. Meanwhile, the Trump memecoin declined 41.55% during the aforesaid period. The Trump family-backed World Liberty Financial (CRYPTO: WLFI) besides shed 43.82% of its worth implicit the past month.