Crypto Clash: Melania Trump’s $MELANIA Shakes Up $TRUMP Market in Sudden Rivalry
Melania Trump, wife of U.S. President-elect Donald Trump and soon-to-be First Lady, launched her own meme coin, $MELANIA, early today, January 20 (late Sunday U.S. time).
The announcement briefly caused a sharp drop in the value of her husband’s meme coin, $TRUMP, by 50%, as it diverted attention from Donald Trump’s offering.
Melania Trump posted on social media, stating, “The official Melania Meme is live! You can buy $MELANIA now.”
Reports show that $TRUMP’s value fell to $41 before recovering to $47. Meanwhile, $MELANIA surged by an astounding 3,035.16%, reaching $0.1702 with a market cap of $7.31 million by 7 a.m. IST on January 20.
Speaking at a rally in Washington celebrating his inauguration, Donald Trump referred to these coins as “all investments” and remarked, “Bitcoin has shattered one record after another.”
Financial Implications of Trump Tokens
According to CoinGecko, Trump-affiliated tokens had a trading value of nearly $13 billion before $MELANIA’s launch, making them the 19th most valuable cryptocurrency globally.
Ownership of these coins is reportedly concentrated, with Trump affiliates controlling 800 million tokens in addition to the 200 million already in circulation. This setup could unlock as much as $51 billion, per CoinGecko.
Critics have raised concerns about the ethics and potential conflicts of interest surrounding these tokens. On the other hand, supporters praise the Trump family’s business acumen and innovative approach to cryptocurrency.
Crypto-Friendly Policies and Future Plans
Donald Trump has pledged to promote crypto-friendly regulations, appointing pro-crypto individuals to key positions in his administration.
He also announced plans to release 1 billion “Official Trump” tokens over the next three years, with 200 million already in circulation since their initial release.
Melania Trump’s $MELANIA token was introduced shortly before Donald Trump’s inauguration as the 47th U.S. president.
Her social media announcement emphasized the token’s availability, while a disclaimer on its website stated that $MELANIA tokens are “digital collectibles” meant to express support and engagement with the symbol and associated artwork, rather than serve as investment opportunities or securities.
Market Reaction to Meme Coins
The launch of $MELANIA led to a significant sell-off in $TRUMP, with its value dropping by more than 50% from $75 to $30 before stabilizing at $64.
Analysts at The Kobeissi Letter noted the dramatic market movements, stating, “Less than 48 hours ago, Donald Trump launched $TRUMP, which just erased $7.5 billion in market cap in 10 minutes.”
Meme coins, inspired by internet trends and memes, are highly speculative and prone to volatility. Previous examples, such as the “Squid Game” token, demonstrate the potential for significant losses following initial hype.
Broader Impact on the Cryptocurrency Market
The introduction of Trump-affiliated meme coins has amplified bitcoin’s momentum, with retail traders optimistic about the incoming administration’s commitment to the crypto industry.
Bitcoin hit a record high of $109,241 on Monday, while other cryptocurrencies like Dogecoin and Ethereum also posted gains.
Despite the enthusiasm, the surge in meme coins raises questions about their long-term sustainability and potential regulatory implications.
Melania Trump’s $MELANIA token, marketed by MKT World LLC, a Florida-registered company she owns, has also faced scrutiny. The company will be able to sell the tokens after a 30-day lock-up period.
Ethical Concerns and Potential Conflicts of Interest
Some critics argue that the Trumps’ involvement in cryptocurrency represents a conflict of interest, especially as Donald Trump assumes the presidency.
His previous ventures, such as releasing crypto trading cards during his campaign, have also drawn criticism.
The Trump-affiliated meme coins’ websites include disclaimers emphasizing their non-political nature and lack of association with government agencies. Despite this, concerns persist over the blending of personal profit motives with political influence.
