Here's a theory about why crypto is struggling: Maybe launching presidential meme coins wasn't the confidence-builder the industry needed. Ross Gerber, CEO of Gerber Kawasaki Wealth & Investment Management, thinks the rise of celebrity-backed tokens like Official Trump and Official Melania have spooked regular investors right out of the market.
Speaking with Business Insider this week, Gerber laid out a straightforward case. When celebrities launch these meme coins, retail investors pile in believing the hype. Then the tokens crash. The investors lose their money, the celebrities walk away richer, and those burned investors don't come back. As Gerber put it, the "money doesn't come back" because it's effectively been "stolen" from them.
It's not just the Trump family tokens either. Gerber pointed to former New York City mayor Eric Adams' cryptocurrency and the notorious $HAWK coin from internet personality Haliey Welch as prime examples of celebrity coins that left ordinary people holding the bag. His bigger concern is that the Trump administration's hands-off approach to crypto regulation is making the entire market less appealing to everyday investors who've watched these pump-and-dump schemes play out.
The Numbers Tell an Ugly Story
Gerber's critique comes against a brutal backdrop for digital assets. Bitcoin (BTC) has crashed nearly 50% from its October high, falling below where it traded in November 2024. Early February saw a particularly nasty sell-off that triggered more than $2.7 billion in liquidations, the sharpest decline since 2022 according to algorithmic trading firm Wintermute.
The slump wasn't happening in a vacuum. Kevin Warsh's nomination as Fed chair, disappointing earnings from the "Magnificent Seven" tech stocks, and weakness in precious metals all contributed to the downturn. Wintermute noted that capital has been rotating heavily into AI-focused equities, leaving crypto underperforming whether markets are rallying or selling off. That's classic bear market behavior.
As for those celebrity meme coins? The Melania Trump token (MELANIA) dropped 36.11% over the past month, with a brief bump when the Amazon MGM documentary about the First Lady premiered in late January. The Trump memecoin fared worse, sliding 41.55% during the same period. Even the Trump family-backed World Liberty Financial (WLFI) shed 43.82% of its value. Popular meme coins like Dogecoin and Shiba Inu were also in freefall, underscoring just how volatile these assets have become.
The Industry Can't Agree on Trump's Impact
Not everyone shares Gerber's dim view of the Trump administration's crypto approach. Mark Yusko, CEO of Morgan Creek Capital Management, believes Trump has a different agenda focused on maintaining dollar dominance. He's predicting Bitcoin (BTC) could bottom somewhere between $58,000 and $63,000 come September. Yusko also warned that the current version of the Clarity Act is a "non-starter" that risks pushing crypto toward central bank digital currencies, centralization, and greater government control.
Then there's Anthony Scaramucci, who's been a sharp critic of Trump's tariffs and foreign policy but has nothing but praise for his crypto stance. Scaramucci said the administration is "far better" for digital assets than what would have happened under Joe Biden or Kamala Harris. He's argued that Trump's policies could benefit Bitcoin and has welcomed the progress being made on crypto and stablecoin legislation.
So you've got Gerber saying celebrity coins and lax oversight are poisoning the well, Yusko warning about centralization risks, and Scaramucci cheering deregulation. The one thing they all seem to agree on is that crypto is having a moment, just not necessarily a good one.
