Trump's Meme Coin Launch Sparks Disagreement in the Crypto Sector

The elected President introduced the "Trump" token on January 17, while his wife, Melania, launched her pseudo-coin "Melania" on January 19.

The newly elected President of the United States has made a surprising entry into the world of cryptocurrencies by launching his own meme coin, named after himself. The coin, called "Trump," was introduced on January 17 with much fanfare. Interestingly, his wife, Melania, also joined the crypto bandwagon, launching her own meme coin, named "Melania," on January 19.

The market value of Trump's meme coin soared to an impressive height, reaching $15 billion at one point. However, as Melania's token also gained attention, the value of Trump's coin dropped to below $8 billion.

Both the Trump and Melania coins come with disclaimers on their respective websites, stating that these tokens "are not intended to be or are not" investment opportunities or securities.

The meme coin sector, which includes tokens like Dogecoin that have low intrinsic value and high volatility, has been a subject of contention. It has drawn criticism that the mainstream crypto industry is becoming too frivolous and risky for the average investor.

Meme coins heavily rely on support from social media, which can be as fleeting as the coins themselves.

"The weekend launches are now clearly a blight that we will have to work to put behind us as builders," said Rob Hadick, general partner at crypto-focused venture-capital firm Dragonfly Capital.

Earlier, Trump had expressed skepticism towards cryptocurrencies, calling them a "scam." However, during his 2024 campaign, he became the first presidential candidate to accept digital assets as donations.

During his campaign, Trump also stated that he would create a strategic reserve of Bitcoin and appoint financial regulators who would adopt a more positive stance on digital assets.

Such statements led to expectations that the future US President would ease regulations on the crypto industry.

After Trump's victory, Bitcoin soared to another all-time high and is currently valued at around $107,000.