Just a day after Donald Trump was sworn in as the 47th President of the United States, investors in the Trump-backed meme coins, TRUMP and MELANIA, experienced substantial losses as the tokens suffered sharp declines.
Trump Coin Skyrockets—Then Crashes
Just two days before his inauguration, on January 18, Donald Trump launched his meme coin, Official TRUMP Official Trump (TRUMP), on the Solana (SOL) blockchain. The token’s launch was followed by a meteoric rise, with Trump spiking more than 840% from its all-time low of $6.24 to a peak of over $75 on January 19. This surge saw the coin’s market cap soar to nearly $15 billion.
However, by January 21, the token’s value had plummeted almost 57%, dropping to $33. On-chain analysts noticed significant movements involving whale investors, including a high-profile transaction from a wallet labeled “Ansem.”
The wallet, which had initially invested 9.38 million USDC to buy 194,799 TRUMP tokens at an average price of $48.14, sold off its holdings at $35.04 per coin. This move resulted in a staggering $2.55 million loss, as the wallet received only 6.83 million USDC in return.
MELANIA Meme Coin: A $3.5 Million Loss
In a similar turn of events, the MELANIA meme coin, named after the First Lady, saw a massive drop in value after an initial surge. On January 19, the MELANIA token hit a high of $13.73, attracting significant whale interest. One whale, in particular, purchased 440,136 MELANIA tokens for 20,185 Solana (approximately $5.1 million) at a price of $11.60 per token.
However, the token’s value has since plunged over 66%, leaving the whale with a floating loss of $3.53 million. As of today, the MELANIA token is trading at just $3.72, representing a 73% decline from its peak.
Criticism and Concerns Over Potential Conflicts of Interest
The launch of TRUMP and MELANIA has sparked widespread controversy, with many accusing the Trump family of using the tokens as a cash grab and a potential conflict of interest. Critics argue that the introduction of these coins, especially so close to his inauguration, raises ethical concerns.
Despite these issues, some crypto traders have profited from the tokens’ brief rise. Reports have surfaced of traders who managed to sell their TRUMP and MELANIA holdings at a profit, turning into overnight millionaires.
A Meme Coin Trend With Staying Power?
Despite the recent downturn, some crypto industry leaders suggest that meme coins are likely to remain a dominant force in the market. Ki Young Ju, CEO of CryptoQuant, has speculated that meme coins could continue to be a major trend in the crypto space through 2028, aligning with the duration of Trump’s presidency.
Interestingly, Trump did not mention cryptocurrency during his inauguration speech, which left both attendees and the crypto community puzzled, as many expected a mention of the increasingly important sector.
As the market for Trump and Melania tokens continues to fluctuate, it’s clear that these meme coins are facing growing scrutiny—though they have certainly made their mark on both the crypto world and the broader political landscape