Trump Factor Drives FAFO Barron Meme Coin Price Surge
The price of the Solana-based meme coin FAFO Barron increased by 250% in four hours after President Donald Trump uploaded a photo of himself holding an FAFO meme coin on his social media network, Truth Social, on January 27. Inspired by Barron, Donald Trump’s youngest son, the FAFO meme coin was launched on Pump.fun, Solana’s meme coin creation site.
According to CoinMarketCap, the token’s market capitalization increased significantly during those hours, reaching around $148K. Price swings were noted on the chart, including a notable increase in market capitalization and trading volume, which were immediately followed by a pullback.
The price of the meme coin began to fall, and as of this writing, it is currently trading at $0.00001728, even though the President’s promotion increased interest in FAFO. This represents a dramatic 28% drop in a single hour. FAFO’s launch follows the launch of another cryptocurrency called “Barron” on Solana on January 20, the day President Trump became the 47th President of the United States.
Soon after the launch, developers took out $1 million in Barron tokens, similar to rug pull.
Visa’s Facebook Hacked, Promotes a Crypto Scam Project
Earlier today, hackers accessed Visa’s official Facebook page and used it to advertise a scam Solana-based coin trading with the ticker $VISA. The token’s price spiked and fell, indicating a possible rug-pull fraud.
A rug-pull is a scam in which token developers abruptly sell their shares, causing the token price to drop. This incident is the latest in a rising trend of corporate social media profiles being taken over and used to advertise fraudulent cryptocurrency schemes.
Allegations Against Solana’s Pump.fun Platform
The Solana-based Pump.fun platform enables anyone to generate a meme coin and has been recognized as one of the best options for AI agents to develop meme coins. However, many industry players have claimed that dishonest people are using Pump.fun to introduce fraudulent tokens that cause investors to lose money.
On-chain data shows that only 0.4% of Pump.fun’s 14 million members made more than $10,000, with the bulk suffering losses. Earlier this month, Burwick Law Firm stated that it would proceed with legal action against Pump.fun, alleging that the company had taken advantage of investors via what the law firm’s founder, Max Burwick, refers to as an evolution of multi-level marketing scams.
PEPE Meme Coin Heads Towards A 20% Crash
After a slight recovery in the past week, Pepe (PEPE) fell 15.7% on the last day, trading at $0.000012. PEPE’s long-to-short ratio is below one, suggesting that more traders are bearish about the coin’s price action.
On January 18, the price of Pepe was around a falling trendline created by joining several highs since early December. The price fell more than 30% until Sunday when it closed below its 200-day EMA at $0.000014.
PEPE could extend the drop by about 20% from present levels and retake its November 8 low of $0.000010 if it keeps correcting and closes below $0.000013 on the daily candle. On the daily chart, the Relative Strength Index (RSI) is 31 and pointing lower, suggesting that the slide could continue due to strong bearish momentum that is not yet oversold.
The MACD indicator also displays bearishness, indicating a sell sign.
Executive Order and Crypto ETP’s Performance
Meanwhile, the broader crypto market is down today despite President Trump’s executive order proposing a national crypto reserve. On-chain data indicates that the order caused inflows in crypto exchange-traded products (ETPs).
This was the third week in a row that the market registered positive gains, reaching $4.7 billion for the year. Bitcoin ETPs have surpassed all other ETPs, with their inflows reaching $1.6 billion last week.
