Cryptocurrency markets witnessed significant fluctuations on Monday after the Trump family ventured into meme coins, with the value of the tokens they launched a day earlier dropping.
First lady Melania Trump’s newly announced meme coin, MELANIA, has fallen more than 60% from its initial high after President Donald Trump took office.
melania The current market cap is $625.5 million. CoinGecko data. At the same time, Donald Trump’s meme coin, President Trump official (TRUMP) also took a big hit, dropping 43% to $45 from its high of $73.43 at the beginning of the week.
According to data from CoinGecko, the Solana-based coin soared 12,000% on its debut, reaching a peak of $13.05, but has since fallen to just $4.18.
The project is billed as a collectible and entertainment token. FAQ This is “not a financial product or an investment,” he said. However, despite the disclaimer, its precipitous decline in value has raised questions about its speculative nature.
Memecoin’s distribution model, designed for gradual release, allocates 35% of the tokens to team vesting over 13 months, alongside a 20% Treasury and community initiative allocation.
On the other hand, TRUMP initially showed explosive growth, but break At its peak the day before he took office, it ranked among the top 15 cryptocurrencies by market capitalization.
However, Melania’s launch and subsequent diversion of liquidity caused a sharp decline in the Trump meme coin.
Solana infrastructure issues It got worse Platforms like Phantom Wallet and Jupiter Exchange have been overwhelmed by the surge in transactions, creating chaos.
“The TRUMP token launch represents an unprecedented moment in the crypto market, marking the first time a sitting president has been involved in a memecoin launch,” said Founder and CTO Dan. Hughes said. radixsaid decryption.
Hughes pointed to the subsequent launch of MELANIA tokens, along with reports that Team Wallet converted TRUMP’s holdings into major cryptocurrencies, including: Solana (Sol), Ethereum (ETH), and potentially Bitcoin (BTC) spiked to $108,000 while signaling the possibility of a coordinated strategy that could destabilize market dynamics.
“This pattern of token launches by public figures, especially politicians, may indicate a worrying trend in crypto markets where influence and liquidity manipulation can overshadow fundamental value creation.” said Hughes.
Amidst the meme coin turmoil, world liberty financial WLF, a DeFi platform partnered with President Trump and his family, made a significant cryptocurrency move during the inauguration.
The platform added approximately 439 Wrapped Bitcoins (wBTC) worth $47 million to its balance, increasing its holdings to 456.77 wBTC.
The purchase was part of a series of transactions totaling nearly $100 million in BTC and ETH over two days.
talk to decryption, Sudhakar Lakshmanaraja, Founder Digital South Trust“The Trump-Melania coin crash is a clear example of why substance must take precedence over hype in the crypto world.”
“This situation is a stark reminder that hype and speculation can only move tokens so far. Without a strong use case or utility, meme coins are subject to volatility and market sentiment. It’s easy,” Lakshmanaraja added.
The memecoin turmoil unfolded against the backdrop of President Trump’s second term, when expectations for crypto-friendly policies were high, at least for now. remain unfulfilled.
President Trump’s inaugural address and first executive order excluded digital assets, prompting supporters who had hoped for regulatory clarity, Bitcoin reserves, and repeal of controversial SEC rule SAB 121. was disappointed.
Edited by Sebastian Sinclair
Daily debriefing newsletter
Start each day with the current top news stories, plus original features, podcasts, videos, and more.
