The return of Donald Trump to the White House has sparked a new dimension for the meme coin market. In the last few weeks, meme coins have been flying high on major discussion and market charts.
Between that period, the meme coin market sphere became one of the most talked about blockchain and crypto phenomenon. Fueling the sudden drastic hype is the intruding launching of $TRUMP and $MELANIA the official meme coin of Donald and Melania Trump.
Launching separately but shortly before the inauguration of Trump, the two tokens took the meme coin landscape and broader crypto market by storm. Early backers netted astronomical gains as both meme coins gained massive market caps shortly after launching.
At their respective peaks, TRUMP and MELANIA recorded an all-time high of $75.35 and $13.73. The meme coins outperformed most cryptocurrencies shortly after their market debut, enjoying massive listings across top exchanges.
However, with the decreasing momentum surrounding the tokens, the meme coins have tanked by a noticeable level. Similarly, questions surrounding the tokens’ allocation and use cases have raised questions about their legitimacy.
One major accusation flying around is that the two meme coins are potential rug pulls, accusing the developers of banking on the sudden interest in meme coins and the euphoria of Trump’s inauguration.
Background Details on TRUMP and MELANIA?
TRUMP and MELANIA are two different meme coins. Donald Trump announced the launching of TRUMP on Friday, January 17, 2025, through a post via his official X account.
With just a few hours to his inauguration then, Trump presented the meme coin as a representative of what he and his supporters represent: winning. Initially, some doubted the token indicating the post may be a scam.
The meme coin soared massively after it became clear that the token has a real connection to Trump. In less than two days of debuting, TRUMP raised $1 billion in token sales. Within that period, the meme coin also gained a market cap of $10 billion.
Conversely, Melania Trump launched her meme coin MELANIA on the eve of Trump’s inauguration. She revealed the token through a post on her official X page.
Like TRUMP, MELANIA quickly attracted the investing community, hitting a massive market cap of $1.7 billion a few hours after launching. The two meme coins caused massive network congestion on the Solana network, highlighting their massive market demands.
Suddenly, the value of the two meme coins began to drop after the inauguration of Trump. TRUMP in the last 24 hours has plummeted by 13% and is valued at $35.38. The market cap of the token also went down by 13% with $7.07 billion remaining.
MELANIA has shredded a significant portion of its market value, currently trading at $2.74%, while dropping by 31% in the last 24 hours. Likewise, the market capitalization of the meme coin is now $469.42 million also dipping by 38% within that period.
Are they Potential Rug Pull?
How the two meme coins suddenly lost traction is quite alarming. While questions about their credibility are summing, one thing remains clear; Donald and Melania Trump launched the projects.
The distinguished personalities of the two figures should quench fears of a rug pull. Still, the major downsides of the two tokens are worth discussing, most especially TRUMP.
Foremost, the tokens are regarded as mere meme coins and their primary utility is connected with the brand of the two figures. The meme coins help establish a new cultural connection between them and their supporters. Aside from mere speculation, the token has no use case which is a major concern.
In the absence of a use case, the meme coins will struggle to gain traction, exposing investors and early backers to huge risks. Critics also expressed ethical complaints about the meme coins, bemoaning how such speculative assets are connected to two top figures in the US.
Furthermore, TRUMP has a dubious token allocation that leaves 80% of the tokens to CIC Digital, a company with close connections with Trump and another organization known as Fight, Fight, Fight. With its worrying tokenomics, high volatility, and dependence on hype and speculation, $TRUMP is a risky investment.
Above all, the launching of the two meme coins underlines the fusion of decentralized finance into politics, indicating a prosperous future for the cryptocurrency industry.
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