Melania Trump Launches $MELANIA Meme Coin, Triggers $TRUMP Token Crash

The cryptocurrency world witnessed a dramatic turn of events as Donald Trump’s “official” memecoin, $TRUMP, experienced a meteoric rise followed by a sudden freefall. This turbulence was triggered by the unexpected launch of Melania Trump’s own meme coin, $MELANIA, on January 20, just ahead of Donald Trump’s inauguration ceremony.

Melania Trump Introduces $MELANIA Coin

Melania Trump, the incoming First Lady, unveiled her cryptocurrency project on her social media platforms just before Trump’s victory rally in Washington. In her announcement, she stated, “The official Melania Meme is live! You can buy $MELANIA now.”

The new token gained rapid traction in the crypto market, with its price surging above $5 and a market capitalization exceeding $5 billion, according to Forbes. Melania actively promoted the token on X (formerly Twitter), encouraging traders to invest.

Ripple Effect on $TRUMP Coin

Donald Trump’s $TRUMP token initially made headlines for its explosive debut, reaching a market value of $14 billion and briefly securing a spot among the top 20 cryptocurrencies. However, the excitement surrounding $TRUMP was short-lived.

The launch of $MELANIA had an almost instantaneous impact on the market, causing $TRUMP to lose nearly 40% of its value within minutes. Traders swiftly redirected their investments toward Melania’s token, leading to a staggering $7.5 billion loss in $TRUMP’s market value within 10 minutes of $MELANIA’s debut.

Market Reactions and Expert Analysis

The sharp market shift caught the attention of analysts and investors alike. Commenting on the development, The Kobeissi Letter remarked on X, “This is beyond insane. Less than 48 hours ago, Donald Trump launched $TRUMP, which just erased $7.5 billion in market cap in 10 minutes. In the minutes around the launch of Melania Trump’s token, we saw massive sell orders in $TRUMP.”

While the launch of $MELANIA sparked market excitement, it also highlighted the volatility of meme-based cryptocurrencies.

A New Era for Cryptocurrency in the US

David Sacks, a crypto advisor appointed by Donald Trump, hinted at a positive outlook for the industry, stating that the “reign of terror” against cryptocurrency is over, signaling a new era of innovation for crypto in the US. The simultaneous launches of $TRUMP and $MELANIA could symbolize a broader push for mainstream acceptance of cryptocurrencies under the Trump administration.

Conclusion

The launch of Melania Trump’s $MELANIA meme coin has brought a whirlwind of activity to the cryptocurrency market, highlighting the immense influence public figures can wield over digital assets. While $MELANIA achieved rapid success, with its value and market capitalization soaring, it came at the cost of Donald Trump’s $TRUMP token, which suffered a dramatic 40% drop in value within minutes.

This event underscores the highly volatile and speculative nature of meme-based cryptocurrencies, where market sentiment can shift rapidly. Analysts and investors are now closely observing whether these political meme coins represent a fleeting trend or the beginning of a new category in the crypto space.

As the Trump administration signals a supportive stance on cryptocurrency, this episode could pave the way for broader mainstream adoption of digital assets. However, the long-term success of $MELANIA and $TRUMP remains uncertain in this unpredictable market.