Trump Price Tanks Amid $Melania Launch

Trump, which debuted just days before Melania's token, initially saw massive demand, pushing its price above $70 and its market capitalization to over $14 billion. However, following Melania's announcement on social media, Trump's price plunged more than 50%, falling to $30 before recovering to $64.

A cryptocurrency named after former US President Donald Trump, called "Trump," has seen its price sharply decrease following the launch of another token named "Melania."

According to market capitalization tracking platform CoinGecko, Trump, which debuted just days prior to Melania's token, initially experienced high demand, driving its price to over $70 with a market capitalization exceeding $14 billion.

However, following Melania's announcement on social media, Trump's price underwent a drastic decline of more than 50%, plummeting to $30 before partially recovering to reach $64 at the time of writing.

Melania's cryptocurrency, also known as $Melania, generated substantial interest, with its market capitalization reaching $13 billion shortly after launch. Analysts have attributed a portion of Trump's price decline to the launch of $Melania, which siphoned off liquidity as traders shifted their focus to the new token.

"This is absolutely insane," stated analysts at The Kobeissi Letter in a tweet. "Donald Trump's Trump token just erased $7.5 billion in market cap within 10 minutes of Melania's token launch."

Both Trump and Melania are present on the Solana blockchain and carry disclaimers indicating that they are not intended as investment opportunities. Despite these disclaimers, speculative trading has largely driven significant price swings, highlighting the volatility inherent in meme coins.

The Trump Family's Meme Coin Launches Draw Scrutiny

The launches of Trump family meme coins have faced criticism regarding potential conflicts of interest, with Trump-affiliated entities controlling 80% of Trump's supply, which is subject to a three-year lock-up period. This has raised concerns over centralized control and ethical implications.

Stephen Findeisen, known as Coffeezilla, called the launch "historic in its stupidity." Former Trump ally Anthony Scaramucci advised his followers not to "delude" themselves about the coin's potential.

Ben Meiselas of Meidas Touch criticized Trump for prioritizing meme coins over pressing issues, such as the January 6th Capitol riot and his ongoing legal battles.

Trump's recent adoption of crypto-friendly policies, following his earlier dismissal of Bitcoin as a "scam," has sparked fears of regulatory favoritism, further fueling skepticism surrounding Trump.

Meme Coin Frenzy Sparks Market Turmoil

The launches occurred as Bitcoin hit a record high of $108,943, sparking broader market volatility. Analysts have likened the hype around Trump and $Melania to a speculative bubble that could destabilize the market.

Arca's Jeff Dorman highlighted Trump's token as a green light for crypto adoption, stating, "TRUMP token signals that crypto can be used as a capital formation tool."

However, critics have pointed out that meme coins, like those named after Trump, often implode, leaving investors with massive losses, as evidenced by the sharp decline in Trump's price.