Ross Gerber, CEO of Gerber Kawasaki Wealth & Investment Management, has publicly condemned the surge of meme coins associated with former President Donald Trump and First Lady Melania Trump, arguing that their popularity has adversely affected investor confidence in the broader cryptocurrency market.
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ainvest.comThe market has been experiencing a notable downturn, with the $TRUMP coin reportedly losing around 80% of its value over the past year, while the $MELANIA token has plummeted approximately 98% from its peak in January 2025.
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ainvest.comThis decline parallels a broader trend in the crypto market, where Bitcoin has witnessed nearly a 50% drop from its October 2025 peak.
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benzinga.comainvest.comGerber highlighted that the initial surge in value for these tokens, particularly around the time of the 2025 inauguration, has been followed by significant depreciation, leading to a climate of skepticism among retail investors.
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ainvest.comHe described these meme coins as akin to "rug pulls," where investors are left with substantial losses while the celebrity promoters benefit.
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ainvest.comGerber’s criticism extends beyond just the Trump and Melania coins; he has also pointed to other celebrity-backed cryptocurrencies, such as a token launched by former New York City Mayor Eric Adams and the $HAWK coin from internet personality Haliey Welch, as additional examples of investments that have led to investor losses.
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benzinga.comHe argues that such speculative ventures contribute to an environment where ordinary investors get burned, emphasizing that "money doesn't come back" once lost.
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benzinga.comThe current crypto slump has also been attributed to macroeconomic factors, including changes in leadership at the Federal Reserve and a shift in investor capital towards AI-focused equities.
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finance.yahoo.comThis has left cryptocurrencies underperforming during both market rallies and sell-offs, a phenomenon typical of bear markets.
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finance.yahoo.comGerber criticized the Trump administration's approach to cryptocurrency regulation, claiming that it has made the market less appealing to everyday investors.
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benzinga.comHe posited that the lax regulatory environment has allowed for the proliferation of speculative meme coins that are often marketed aggressively, leading to increased risk for uninformed investors.
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ainvest.comHe noted that the continued volatility in digital assets, exemplified by the sharp sell-off that triggered over $2.7 billion in liquidations, is a significant deterrent for potential new investors.
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finance.yahoo.combenzinga.comThis trend of declining prices has stifled demand growth in the crypto sector, causing further concern about its long-term viability.
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ainvest.comWith the cryptocurrency market grappling with these challenges, rebuilding investor trust will be essential for recovery.Economist Mohamed El-Erian of Allianz has echoed Gerber's concerns, stating that institutional participation is critical for Bitcoin's rebound in the current environment.
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ainvest.comAs the market continues to navigate these turbulent waters, Gerber's critique serves as a reminder of the risks associated with celebrity-backed cryptocurrencies and the importance of regulatory oversight in protecting everyday investors from potential losses in an increasingly speculative landscape.
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ainvest.comIn summary, the hype surrounding Trump and Melania memecoins has not only contributed to significant financial losses for many investors but also highlights the broader issues facing the cryptocurrency market today, including volatility, lack of regulation, and the impact of macroeconomic factors on digital asset prices.
