Trump Media & Technology Group Shares Plummet on Second Term Inauguration Day

On the inaugural day of Donald Trump’s second term, Trump Media & Technology Group witnessed a significant decrease in its stock value, which dropped more than 11 percent in just one day. The price of a share for the company, which operates under the ticker symbol “DJT,” was slightly over $35 in the afternoon, marking a stark contrast to its value above $40 earlier in the week. Over the past year, the shares have experienced a dramatic decline, falling more than 28 percent.

This decline in value is not an isolated incident; multiple entities associated with Trump are also facing similar challenges. Just days before taking office, Trump introduced a cryptocurrency, the price of which took a hit after an initial surge. Specifically, the meme coin named $TRUMP saw a sharp drop of 29 percent on Tuesday. These types of digital currencies, known as memecoins, rely heavily on market sentiment and cultural trends rather than traditional financial metrics, making them highly volatile investment options.

Additionally, Melania Trump launched her own meme coin on the same day as her husband, which racked up a significant loss of 51 percent on Tuesday, signaling a concerning trend. Both cryptocurrencies, tied to the blockchain Solana, have sparked debates about the ethical implications of elected officials engaging in such speculative ventures. Critics, including former Trump Communications Director Anthony Scaramucci, have expressed deep concerns about the further normalization of such practices, suggesting they could compromise the integrity of political operations.

Democratic Representative Ro Khanna has called for stricter regulations, arguing that elected officials should not participate in speculative investments like memecoins, which could be equated to gambling and should fall under the purview of the SEC. Nic Carter, a partner at Castle Island Ventures and a Trump supporter, labeled the memecoin initiatives as "preposterous," questioning the decision-making behind such launches.

The share price for Trump Media initially surged in response to Trump's election victory but quickly reversed course, prompting questions about the sustainability of the investments tied to his brand. As of the recent reports, Trump holds approximately 114.5 million shares in Trump Media, with an estimated value around $4 billion.