Musk and Trump's "breakup" triggered a sell-off of MEME coins, and both DOGE and TRUMP plummeted

As the relationship between Elon Musk and US President Donald Trump broke down publicly, MEME coins, which are highly associated with the two, suffered a fierce sell-off in the market. DOGE (Dogecoin) fell 6.4% in the past 24 hours to $0.1788, becoming the seventh worst performing asset among the top 100 cryptocurrencies by market value; and TRUMP coins, which represent Trump's political color, plummeted 10% to $9.66, second only to a newly launched currency, ranking second among the top 100 assets.

The turmoil occurred at a critical time node. Only two weeks ago, Trump had dinner with 220 major holders of TRUMP tokens in Florida, showing his "close relationship" with the crypto community in a high-profile manner; while Musk, while serving as an advisor to the Department of Government Efficiency, set up a department called "DOGE" and publicly used the Dogecoin logo, which caused widespread heated discussion. These two influential figures were once important drivers of the surge in the market value of MEME coins.

Analysts pointed out that Musk and Trump's "parting ways" directly impacted the sentiment-driven investment logic of MEME coins. MEME coins essentially lack stable fundamentals, and their prices are extremely dependent on community beliefs and celebrity endorsements. A celebrity's words or actions may cause drastic fluctuations. This incident once again verified the double-edged sword nature of the celebrity effect in the MEME coin market.

Although there is no conclusive evidence that the two will further cut ties with crypto tokens, the market's short-term reaction has already shown panic. Investors may need to re-evaluate the sustainability of binding political sentiment or social celebrity popularity to asset valuation models.