Trump and Melania Launch Rival Memecoins, Reigniting Hopes for Crypto-Friendly Stance

The Financial Times reports that Donald and Melania Trump have launched rival memecoins, triggering a whirlwind in the cryptocurrency market as speculation about the new administration's crypto policies fuels excitement.

Donald and Melania Trump have launched rival memecoins, kicking off a whirlwind in the cryptocurrency market as speculation about the new administration’s crypto policies fuels excitement, but the rapid rise and fall of the tokens’ values have drawn criticism, sparking concerns about market manipulation and financial risks for supporters.

The cryptocurrency, $TRUMP, debuted on Trump's Truth Social platform on Friday evening, quickly skyrocketing from $6 to a peak of $75 per coin, pushing its market cap to over $14 billion, according to Coinbase data. However, the coin's momentum faltered on Sunday when Melania Trump unveiled her own memecoin, $MELANIA, which quickly gained a market cap of $8.5 billion. The announcement caused $TRUMP to lose nearly half its value, wiping out approximately $7 billion in market cap before it recovered some losses.

Memecoins, often launched as industry in-jokes or viral tokens with no underlying business model, have become a speculative sensation in the crypto market. The launch of $TRUMP marks one of the largest and fastest-growing memecoin debuts in history. “It gives legitimacy to these assets and invites every celebrity to come back in and start promoting,” said Jonathan Bixby, a crypto entrepreneur, speaking to the FT. “These next couple of months are going to be wild.”

Despite the buzz, many in the crypto industry have raised red flags. Critics argue that Trump's timing and control of 80% of $TRUMP tokens through his family's business ties are exploitative. Venture capitalist Nick Tomaino labeled the launch “predatory,” warning that the value of the coin's insider-held tokens, which will unlock over the next three to 12 months, could hurt investors during Trump's term.

Trump's return to power has reignited hopes that the administration will adopt a crypto-friendly stance, a shift from his previous skepticism about digital assets. The $TRUMP coin's launch was accompanied by a Washington gala celebrating Trump's inauguration, attended by crypto executives and politicians. Major exchanges like Binance, Coinbase, and Kraken have since announced plans to list the Trump token, signaling growing industry interest in the memecoin phenomenon.

The Trump family's deeper involvement in cryptocurrency extends beyond $TRUMP. Trump and his sons have been promoting World Liberty Financial, a crypto venture led by his business partners, and his social media company reportedly sought to acquire Bakkt, a cryptocurrency trading venue.

Melania's $MELANIA token, described as a “digital collectible” intended to embody her values, also highlights the family's expanding footprint in the sector. While it lacks investment utility, its rapid rise underscores the speculative nature of memecoin markets.

The launch has sparked division among industry figures. Trump's former communications director, Anthony Scaramucci, slammed the memecoin frenzy as damaging to the sector, writing on X, “The Trump memecoin stuff is bad for the [crypto] industry. Don’t delude yourself.”

Still, proponents argue that such high-profile launches could attract new participants and expand the market’s reach. For now, $TRUMP and $MELANIA have become the focal point of the “banana zone,” a crypto trading term for extreme price volatility.