Melania Trump’s Meme Coin (MELANIA) Launch Causes a 55% Drop in Demand for Donald Trump’s (TRUMP) Coin

On January 20, Melania Trump, the former First Lady of the U.S., announced the launch of her meme coin, MELANIA, on X.

Melania Trump’s meme coin, Melania Meme (MELANIA), has tanked demand for Donald Trump’s Official Trump (TRUMP) coin, causing TRUMP to enter a bear market with a 55% market cap drop in just 10 minutes.

On January 20, Melania Trump, the former First Lady of the United States, announced the launch of her meme coin, MELANIA, on X.

The Official Melania Meme is live!

You can buy $MELANIA now.

https://t.co/8FXvlMBhVf

FUAfBo2jgks6gB4Z4LfZkqSZgzNucisEHqnNebaRxM1P pic.twitter.com/t2vYiahRn6

Following her post, Donald Trump shared her announcement during his Victory Rally. This move, which was not anticipated, led to a sharp drop in demand for TRUMP, a meme coin that Donald Trump had launched just 48 hours prior.

The TRUMP token, which had reached a market cap of over $14 billion, experienced a rapid 55% decline within just 10 minutes of Melania’s announcement. However, at the time of writing, TRUMP’s market cap has stabilized at $9.42 billion, with the token trading at $47.19.

Moments later, we posted on X that the coin had launched.

Prior to Donald Trump reposting her announcement, $TRUMP was little changed.

After the repost and our breaking news post, $TRUMP fell -55% in minutes.

Consider turning on @KobeissiLetter notifications. pic.twitter.com/y8AiDY0XIO

Before the launch of MELANIA, TRUMP was performing well, with buyer orders outpacing seller orders in the market. The token was also listed on HashKey Global on January 19. According to Kobeissi Letter, there were large sell orders accumulating in the spot market, ranging from $1 million to $5 million.

The selling pressure was so strong that Solana, $SOL, the cryptocurrency itself, fell nearly 20% in minutes.

The trade went from a rush to the entrance to a rush to the exit.

Across all memecoins, well over $10 billion in market cap was erased in the minutes after launch. pic.twitter.com/DL4YQBMAMf

After MELANIA’s launch, however, the sell orders for TRUMP outweighed the buy orders by a significant margin, with $351.7 million in sell orders compared to $244.5 million in buys within the first hour post-launch. This imbalance contributed to the decline in TRUMP’s price.

Kobeissi Letter also observed that the selling pressure on TRUMP had a knock-on effect on Solana (SOL), causing its value to drop by nearly 20% in minutes.

Despite the volatility, TRUMP still has around 824,000 holders, and the token is currently valued at approximately $39 billion. Additionally, with a vesting schedule of three years, there is potential for the token to stabilize in the future.