Donald Trump’s inauguration as the 47th President of the United States didn’t just grab political headlines—it sent shockwaves through the cryptocurrency world. His family’s meme coins, $TRUMP and $MELANIA, faced a dramatic market crash, wiping billions off their market caps. Here’s a closer look at what happened, the numbers, and what it could mean for the crypto community.
What Caused the Crash of Trump Meme Coins?
The crash of $TRUMP and $MELANIA tokens surprised many investors, especially after their meteoric rise during the launch. The $TRUMP coin had surged by 300% within hours of its debut, reaching a market cap of $7 billion. Meanwhile, Melania Trump’s rival $MELANIA token saw a valuation of $2 billion after its announcement. However, the excitement was short-lived.
As of January 21, $TRUMP’s market cap dropped below $7 billion to $6.86 billion, while $MELANIA saw an even sharper decline, plummeting to $790 million. The crash occurred hours after Donald Trump took his presidential oath, sparking discussions on the volatile nature of meme coins.
Key Reasons for the Crash:
- Overhyped Launch: Both tokens rode on the wave of Trump’s presidential inauguration hype, but lacked substantial utility or clear roadmap, leading to speculative trading.
- Regulatory Concerns: Crypto analysts pointed out potential legal and ethical dilemmas, with experts like Preston Byrne predicting lawsuits against the coins.
- Investor Uncertainty: The lack of immediate crypto-friendly policies from Trump’s administration dampened investor enthusiasm, leading to a sell-off.
What Is the Current Market Performance of $TRUMP and $MELANIA Coins?
Market Snapshot (As of January 21, 2025, 9:20 AM IST):
| Token | Price (₹) | Market Cap (₹) | Change (24H) |
|---|---|---|---|
| $TRUMP | 36.22 | 6.86 billion | -50% |
| $MELANIA | 4.22 | 790 million | -60% |
Grey Market Reactions:
The $TRUMP token’s crash was particularly shocking given its dominance in the decentralized finance (DeFi) market, spearheaded by World Liberty Finance—a platform launched by Trump’s family in September 2024. Investors are now cautious about the long-term potential of these coins, especially after their steep decline.
Why Did Bitcoin Maintain Stability Amid Meme Coin Turmoil?
While Trump’s meme coins nosedived, Bitcoin showed resilience. At the time of writing, Bitcoin was trading at ₹102,701, slightly below its all-time high of ₹109,000 from the previous day. The cryptocurrency market as a whole saw a modest uptick of 0.64%, with Bitcoin dominating 57.69% of the market.
Factors Supporting Bitcoin’s Stability:
- Market Maturity: Unlike meme coins, Bitcoin’s established presence and market credibility helped it weather the volatility.
- Anticipation of Policy Changes: Optimism about Trump’s pro-crypto policies, such as creating a federal Bitcoin stockpile, kept Bitcoin buoyant despite the lack of immediate announcements.
What Does This Mean for the Future of Trump Meme Coins?
The $TRUMP and $MELANIA coins have opened a Pandora’s box of questions about the role of celebrities in crypto. With a significant portion of $TRUMP coins owned by Trump-affiliated organizations like CIC Digital and Fight, Fight, Fight, concerns about conflicts of interest and ethical dilemmas have grown.
Expert Opinions:
- Justin D’Anethan (Crypto Analyst): “The meme coin frenzy may boost short-term gains, but the lack of a solid foundation makes these tokens highly speculative.”
- Preston Byrne (Crypto Lawyer): “The launch of these tokens is a political and legal misstep, potentially leading to lawsuits and regulatory scrutiny.”
FAQs
Why did $TRUMP and $MELANIA coins crash?
The crash was due to overhyped trading, regulatory concerns, and the absence of immediate crypto policies from the Trump administration.
How much value did $MELANIA lose after the crash?
The $MELANIA coin’s market cap dropped from ₹2 billion to ₹790 million, marking a significant loss of investor confidence.
Is $TRUMP still a good investment?
While $TRUMP retains some market presence, its speculative nature makes it a risky investment. Consider market trends and expert opinions before investing.
What was the peak market cap of $TRUMP coin?
The $TRUMP coin peaked at ₹7 billion before crashing post-inauguration.
How is Bitcoin performing compared to Trump meme coins?
Bitcoin remains stable at ₹102,701, maintaining market dominance amid meme coin volatility.
What are the legal implications of Trump’s crypto ventures?
Experts predict potential lawsuits and regulatory challenges due to ethical concerns surrounding Trump’s involvement in cryptocurrency.
Will the Trump administration introduce pro-crypto policies?
While Trump campaigned on promises to support crypto, no immediate actions were announced during his inauguration.
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