Trump-Linked Meme Coins Dominate Crypto Markets Amid Record Bitcoin Surge
Cryptocurrencies have experienced significant gains since Donald Trump’s election victory in November, fueled by his promises to deregulate the sector. On Monday, Bitcoin surged to a new all-time high of $109,241, rising more than 5%, while Dogecoin, dubbed the “people’s crypto” by billionaire Elon Musk, gained nearly 5%, and Ethereum climbed 3.5% to $3,384.
Adding to the market frenzy, Trump officially launched his meme coin, $TRUMP, just days before his inauguration. The token’s website reveals that 80% of the supply is controlled by CIC Digital LLC, a Trump-owned company. Trump announced the launch on social media, declaring, “It’s time to celebrate everything we stand for: WINNING! Join my very special Trump Community. GET YOUR $TRUMP NOW.”
The Meteoric Rise of $TRUMP
Within hours, $TRUMP skyrocketed into the top 20 cryptocurrencies by market capitalization, prompting a digital stampede among investors. Blockchain analysts observed that the token’s rapid ascent drained liquidity from the broader cryptocurrency market, as traders sold off other assets to buy into Trump’s coin.
The excitement wasn’t limited to $TRUMP. Shortly after, Melania Trump introduced her own token, $MELANIA, sharing on social media, “The Official Melania Meme is live! You can buy $MELANIA now.” The launch triggered an unexpected selloff in $TRUMP, causing its price to plummet by more than 50%, from $75 to $30, before rebounding to $64. Meanwhile, $MELANIA peaked with a market capitalization of $13 billion.
Market Reactions and Analyst Insights
The rapid rise and fall of the Trump-affiliated meme coins drew mixed reactions. Analysts at The Kobeissi Letter described the situation as unprecedented, commenting on social media: “Less than 48 hours ago, Donald Trump launched $TRUMP, which just erased $7.5 billion in market cap in 10 minutes. In the minutes around the launch of Melania Trump’s token, we saw massive sell orders in $TRUMP.”
The volatility highlighted the speculative nature of meme coins, which are often inspired by internet trends and lack inherent utility. Similar projects have seen dramatic crashes, such as a coin launched last month by influencer Haliey Welch, which lost 95% of its value shortly after release.
Despite these risks, meme coins continue to captivate traders as high-stakes gambles akin to lottery tickets.
Financial Implications and Regulatory Concerns
While the notional market values of $TRUMP and $MELANIA soared into the billions, analysts warn that liquidating such large positions would likely destabilize their prices. Nevertheless, the tokens could generate significant revenue for Trump-affiliated companies as lock-up periods expire in the next three to 12 months.
The $MELANIA token is managed by MKT World LLC, a Florida-based company owned by Melania Trump. According to the coin’s terms, owners will be able to sell their holdings after 30 days, further raising questions about the potential financial gains for the Trumps while Donald Trump serves as U.S. president.
Meme Coins: A Growing Phenomenon
Meme coins, despite their speculative nature, have become a growing trend in the cryptocurrency world. Trump’s coins symbolize the blending of internet culture, financial speculation, and political influence, but they also raise concerns about transparency and regulatory oversight.
As Trump’s presidency begins, the crypto market will closely watch how his administration shapes the regulatory landscape and whether these meme coins continue to thrive or face heightened scrutiny.
