Trump’s Pastor’s Lorenzo Memecoin Crashes 93%, Sparking Criticism in Crypto Community
Detroit-based Reverend Lorenzo Sewell, who delivered a benediction at former President Donald Trump’s inauguration as the 47th president of the United States, has come under fire following the dramatic decline of his self-launched cryptocurrency, Lorenzo. Launched shortly after the inauguration, the memecoin experienced a staggering 93% drop from its peak market value of $4.5 million within less than a day.
In a statement posted on X (formerly Twitter) on Monday, Reverend Sewell announced that he had permanently locked his Lorenzo tokens into a liquidity pool. “The crypto community was kind enough to send me Lorenzo, so I have permanently locked my tokens into a liquidity pool, so that I will never sell on the community but rather just earn fees as our token continues to flourish,” Sewell wrote, aiming to assure investors of his commitment to the project’s long-term success.
Despite these assurances, the Lorenzo memecoin has struggled to gain traction. Crypto market participants have been quick to criticize Sewell’s involvement, questioning the viability and transparency of the project. Benjamin Cowell, a crypto analyst and podcaster, expressed his disapproval on X, stating, “Forgive him Satoshi, for he knows not what he says,” referencing Bitcoin’s enigmatic creator, Satoshi Nakamoto.
The timing of the memecoin’s launch coincided with Trump’s campaign promises to create a regulatory environment supportive of the cryptocurrency industry. However, Trump did not mention crypto in his inauguration speech, nor did his administration implement any new crypto-related policies in the early days of his presidency. Instead, the crypto community was presented with what many have described as a “bizarre memecoin spectacle” associated with the Trump family.
Onchain data reviewed by DL News indicates that early investors and insiders using sophisticated trading bots were able to profit significantly from the Lorenzo memecoin. These participants reportedly made millions, while many ordinary traders faced substantial losses. For instance, one trader converted a $250 investment into $109,000, and another turned a $741 investment into $100,000. Conversely, some investors experienced severe downturns, with losses reaching up to $75,000 after selling their tokens at nearly half the purchase price.
The Lorenzo memecoin’s rapid decline serves as a cautionary tale within the volatile cryptocurrency market. While a few early adopters managed to capitalize on the initial surge, the majority of investors are now grappling with the consequences of the token’s sharp drop. As the crypto community continues to navigate the complexities of digital currencies, incidents like the Lorenzo memecoin crash highlight the risks associated with speculative investments in the space.