Melania Trump’s $6B Memecoin Rocks Crypto Market, Outshines TRUMP Coin
In a surprising development, U.S. President-elect Donald Trump’s memecoin, TRUMP, suffered a sharp 38% price drop following the debut of MELANIA, a competing memecoin launched by incoming First Lady Melania Trump.
Within two hours of its launch, MELANIA reached a staggering market cap of $6.14 billion, according to DEXScreener data.
Melania Trump announced her self-titled memecoin on Jan. 19 in a post shared on X, amplified by President-elect Trump. The memecoin quickly gained traction, with over 45,000 wallets reportedly purchasing MELANIA shortly after its release.
Meanwhile, TRUMP saw its market cap shrink by $5 billion, as its price plummeted from $74.6 to $45.9 in just 40 minutes, according to CoinMarketCap.
Volatility and Market Reactions
Stefan Kimmel, board member at M2, commented on the market turbulence caused by the memecoin frenzy, “Last night, the $MELANIA meme coin was launched. Traders hoped for a repeat of the $TRUMP token frenzy, sold $TRUMP and entered $MELANIA. As a result, $TRUMP fell by ~35%, while $MELANIA shot up. As traders noticed $TRUMP dropping, they also got out of $MELANIA, dropping it by 30%. Anybody late to the game (by a few hours) would have lost money twice in this trade. That is exactly why meme coins are tricky for retail investors. Almost all of them lose money.”
Kimmel added that a longer-term investment strategy may be more beneficial, “Based on the outlook for 2025 and beyond, the better strategy might be to pick a few bigger tokens to buy and hold (aka HODL).”
Token Distribution and Transparency Concerns
The official website for MELANIA describes the token as a platform for “support” and “engagement,” emphasizing it is “not intended” for investment purposes. It claims the token’s supply was divided as follows: 35% for the development team, 20% each for treasury and community funds, 15% for public sales, and 10% for liquidity.
However, blockchain analytics platform Bubblemaps disputed this claim, reporting that nearly 90% of the token supply resides in a single wallet. This has raised concerns about transparency and the true distribution of the token.
Expert Insights
Crypto analysts have expressed mixed reactions to the launch. Coinbase executive Conor Grogan observed that while MELANIA is unlikely to be a scam, it appears less professionally executed than TRUMP. “My guess is that this token was handled by a different team than TRUMP’s,” Grogan noted. “That one looks like professional market makers, this one honestly looks like college kids.”
An anonymous developer known as “cygaar” added that MELANIA’s website, created just a day before launch, lacks cybersecurity measures and exhibits basic coding.
Behind the Scenes
The domain “melaniameme.com,” tied to the memecoin, is registered to MKT World LLC, a company established by Melania Trump in 2021, according to Cointelegraph. State records indicate it shares a business address with the Trump International Golf Club in Florida.
Timing and Impact
The launch of MELANIA and the subsequent turmoil for TRUMP come just one day before Donald Trump’s Jan. 20 presidential inauguration. While the memecoin launches generated excitement among crypto enthusiasts, the market volatility has underscored the risks associated with speculative investments in memecoins.
As Stefan Kimmel noted, these tokens remain a challenging space for retail investors, with most facing losses in the short term. For many, the unpredictable nature of memecoins serves as a stark reminder of the importance of cautious, informed investing.
