The crypto market witnessed significant volatility on Monday after the Trump family ventured into meme coins, with tokens they launched a day earlier sliding in value.
First Lady Melania Trump’s newly launched meme coin, Melania Meme (MELANIA), has fallen more than 60% from its debut high following President Donald Trump’s inauguration.
MELANIA now sits with a market cap of $625.5 million, per CoinGecko data. At the same time, Donald Trump’s meme coin, Official Trump (TRUMP), also took a sharp hit, falling 43% to $45 from a peak of $73.43 earlier in the week.
The Solana-based coin skyrocketed 12,000% on its debut, reaching as high as $13.05 before falling to just $4.18, CoinGecko data shows.
Billed as a collectible and entertainment token, the project’s FAQ noted it is “not a financial instrument or investment.” However, the steep drop in its value has raised questions about its speculative nature despite the disclaimers.
The meme coin’s distribution model, designed for gradual release, allocates 35% of tokens to team vesting over 13 months, alongside a 20% treasury and community initiative allocation.
Conversely, TRUMP initially saw explosive growth, breaking into the top 15 cryptos by market cap during its peak just a day before his inauguration.
However, the launch of MELANIA and the subsequent diversion of liquidity triggered a sharp downturn for the Trump meme coin.
Infrastructure issues on Solana exacerbated the chaos, with platforms like Phantom Wallet and Jupiter Exchange overwhelmed by transaction surges.
“The launch of TRUMP token represents an unprecedented moment in crypto markets, marking the first time a sitting president has been associated with a memecoin launch,” Dan Hughes, Founder and CTO of Radix, told Decrypt.
Hughes noted that the subsequent launch of the MELANIA token, coupled with reports of team wallets converting TRUMP holdings into major cryptos like Solana (SOL), Ethereum (ETH), and potentially Bitcoin (BTC)—coinciding with its surge to $108,000—suggests a potentially coordinated strategy that could destabilize market dynamics.
“This pattern of celebrity-driven token launches, particularly from political figures, potentially marks a concerning trend in crypto markets where influence and liquidity manipulation could overshadow fundamental value creation," Hughes stated.
Amidst the meme coin chaos, World Liberty Financial (WLF), a DeFi platform affiliated with President Trump and his family, made significant crypto moves amid the inauguration.
The platform added approximately 439 Wrapped Bitcoin (wBTC), valued at $47 million, to its balance, increasing its holdings to 456.77 wBTC.
The purchase was part of a series of transactions totaling nearly $100 million in BTC and ETH over two days.
Speaking to Decrypt, Sudhakar Lakshmanaraja, Founder of Digital South Trust, said, “The Trump and Melania coin crash is a clear example of why substance must take precedence over hype in the world of cryptocurrency.”
“This situation is a stark reminder that hype and speculation can only drive a token so far. Without a strong use case or utility, meme coins are vulnerable to volatility and market sentiment,” Lakshmanaraja added.
The meme coin turbulence unfolded against the backdrop of President Trump’s second term, where expectations for crypto-friendly policies were, at least for now, left unmet.
Trump’s inaugural speech and initial executive orders excluded digital assets, disappointing proponents who had anticipated regulatory clarity, a Bitcoin reserve, or a reversal of the SEC’s controversial rule “SAB 121.”
Edited by Sebastian Sinclair