Summary:
- Donald Trump’s meme coin, $TRUMP, launched on January 18, reached a peak market cap of $15 billion before dropping to $11.74 billion.
- Melania Trump’s rival token, $MELANIA, surged by 3,000% upon launch, reaching a market cap of $1.62 billion and disrupting $TRUMP’s value.
- The debut of the Trump family’s tokens caused significant volatility in the cryptocurrency market, impacting major players like Bitcoin and Ethereum.
- Critics have raised ethical concerns over potential conflicts of interest, while supporters anticipate pro-crypto policies under Trump’s administration.
The cryptocurrency market experienced a dramatic upheaval this weekend as U.S. President-elect Donald Trump and incoming First Lady Melania Trump launched competing meme coins, sparking volatility across the digital asset space. The debut of these tokens has not only drawn billions in trading volume but also raised questions about market ethics and potential conflicts of interest.
Donald Trump’s meme coin, $TRUMP, was introduced on January 18, just days before his inauguration. Initially priced at $10, the token skyrocketed to a peak value of $75, achieving a staggering market capitalization of $15 billion at its height. By January 20, $TRUMP was trading at $60, reflecting a 64% increase over the previous day but below its earlier peak. With 200 million tokens currently in circulation, $TRUMP has become the 22nd most valuable cryptocurrency globally.
However, the excitement surrounding $TRUMP was short-lived. On January 19, Melania Trump launched her own rival token, $MELANIA, which immediately disrupted the market. Within hours of its debut, $MELANIA surged by 3,000%, reaching a high of $13.14 per token and a market capitalization of $1.62 billion. The launch triggered a massive sell-off in $TRUMP tokens, causing its value to plummet by 40% and wiping out approximately $7.5 billion from its market cap within minutes.
The rivalry between the Trumps’ tokens has rattled the broader cryptocurrency market. Major cryptocurrencies like Bitcoin and Ethereum saw declines over the weekend as capital flowed into the Trump-themed meme coins. Bitcoin dropped 2.71% to trade at $102,115.37 with a market cap of $2.02 trillion, while Ethereum fell 0.67% to $3,273.32. Solana, whose blockchain hosts both $TRUMP and $MELANIA coins, fared better than other major cryptocurrencies but still experienced a 9.23% drop in value.
The launches have sparked divided reactions among crypto enthusiasts and critics alike. Supporters view the tokens as innovative moves that could bolster cryptocurrency adoption under Trump’s pro-crypto administration. Trump has promised to reduce regulatory barriers for digital assets and has appointed crypto-friendly figures to key positions in his government.
Critics, however, have raised ethical concerns about potential conflicts of interest and transparency issues surrounding the tokens’ distribution. Reports indicate that entities linked to the Trump Organization hold significant stakes in both coins, raising questions about insider benefits and market manipulation.
Despite these controversies, both tokens have captured significant attention in the crypto world. At the time of writing, $TRUMP remains one of the top-performing meme coins globally, while $MELANIA continues to gain traction among traders.
As the Trump administration prepares to take office with plans to designate cryptocurrency as a “national priority,” the impact of these meme coins on both digital finance and political discourse remains a topic of intense debate. Whether this marks a turning point for cryptocurrency adoption or a cautionary tale of speculative excess is yet to be seen.
Source: Live Mint
