Melania Trump’s Memecoin Melania Has Lost Almost 90% of Its Value

The first lady’s token reached a market capitalization of as much as $2.1 billion. But after reaching an all-time high of $13.73, the token now changes hands for around $1.50.

The First Lady’s token saw an impressive market capitalization of up to $2.1 billion. However, after reaching an all-time high of $13.73, the token is currently valued at around $1.50.

Despite the First Family’s involvement in memecoins, crypto enthusiasts are discovering that it does not automatically guarantee success.

According to data from CoinMarketCap, Melania Trump’s crypto memecoin, MELANIA, has lost nearly 90% of its value since Donald Trump’s inauguration. Meanwhile, the president’s token, TRUMP, has seen a decline of around 75% from its all-time high.

Memecoins are typically highly volatile and often lack intrinsic value. According to Stephane Ouellette, chief executive officer and co-founder of FRNT Financial Inc., the value of these tokens can hinge on something going viral, which may not be sustainable.

“The performance of TRUMP and MELANIA reflects this fleetingness,” said Ouellette. “These assets have unclear purposes beyond their momentary novelty and this gives speculators little incentive to hold these assets for anything more than time horizons measured in days.”

The president’s entry into the world of memecoins was met with varying reactions within the crypto industry. Some viewed it as a positive indication of his commitment to making crypto a priority, while others felt that it was ultimately detrimental to the industry’s efforts to establish credibility.

The president announced his memecoin in a Jan. 17 TruthSocial post. The token briefly reached over $70, but saw declines after Melania Trump launched her own coin two days later. Both tokens were distributed on the Solana blockchain.

The first lady’s token went on to achieve a market capitalization of up to $2.1 billion. After reaching an all-time high of $13.73, the token is currently valued at around $1.50.

According to Joe McCann, founder and CEO of Asymmetric, these types of price pullbacks are common for memecoins, but Trump’s actions have the potential to influence all markets, including crypto.

“Unlike other memecoins, you have the literal president of the United States who is exceptionally good at creating viral controversy on the internet, whether you like it or not, that could have an impact on the price of his token either directly or indirectly,” said McCann.

The Trump-linked issuers of the president’s coin are CIC Digital LLC and Fight Fight Fight LLC. CIC Digital did not immediately respond to requests for comment. Fight Fight Fight and MKT World LLC, the Melania-linked issuer of the first lady’s coin, could not be reached for comment.

Since its launch, risk modeling firm Gauntlet has estimated that the Trump token has likely generated at least $11.5 million in fees for entities linked to the president. However, based on an analysis by Bloomberg, most wallets that purchased the token made no more than $13.