The recent launch of Melania Trump and her meme coin, $MELANIA, has caused major turbulence in the cryptocurrency market. Within hours of its debut, $TRUMP meme coin, launched earlier by President-elect Donald Trump, saw its value drop by 28%. This erased billions from its market cap.
$MELANIA Surges Amid Launch Frenzy
The $MELANIA meme coin is created by the soon to be First Lady Melania Trump. Its price got to $13 shortly after it was launched. By the end of the day, the token had reached a market capitalization of $2 billion. This being thanks to high trading volumes as well as public attention. It was observed that the token experienced high trading volume. More than 133,000K tokens were traded in the first few hours.
Nevertheless, the $MELANIA coin had a slight pullback, with the price falling by 40% from its highest point to $8.49. Despite this volatility, the coin has been able to attract both the retail trader as well as the institutional investor.
The team behind $MELANIA had distributed 35 percent of the token supply to the development team. A further 20 percent to the treasury and another 20 percent to the community. The rest of the tokens were distributed between liquidity and public offering. The 30 day lock-up period for the team’s shares has been compared to the $TRUMP coin. The latter has a much longer lock up period of three years.
TRUMP Coin Suffers Losses as Investors Sell Off
After the release of $MELANIA, the $TRUMP coin faced a major dip, with its market cap dropping by almost $7.5 billion. The coin, which traded at a record high of $74 on Sunday, was last trading at $53.5 at the time of writing. This is a 28% decrease in value which indicates a major selloff due to the $MELANIA launch.
The $TRUMP coin, which was launched by the former U.S. President, Donald Trump had earlier on picked up the pace and in the course of the weekend it was trading $43 billion daily.
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But the initiation of $MELANIA seems to have pulled away liquidity from $TRUMP and as a result, its value has dropped. Nevertheless, $TRUMP is still the third biggest meme coin in the market capitalization list right after DOGE and SHIB.
Crypto Market Reactions and Criticism for Melania Trump
The release of the $MELANIA coin has generated a lot of attention within the cryptocurrency world. While some traders saw a chance to gain profits, others expressed concerns with the ethically questionable nature and practicality of the process.
Regarding the issues and concerns, it has been observed that 90% of the entire supply of the $MELANIA token is still in a single wallet. This has given rise to the concerns related to centralization and lack of proper information disclosure.
Prominent figures in the cryptocurrency sector have raised eyebrows over the active participation of a US president and the first lady in the promotion of meme coins. Crypto investigator Coffeezilla had this to say, “80% of tokens vest to insiders during the presidency… this should be a crime.”
In the same way, Alpha Prime Capital founder William Scythe expressed his disapproval of the decision by saying that it is a self-serve action.
The $MELANIA and $TRUMP meme coins’ launches have sent shock waves across the entire crypto market. Popular meme coins, DOGE and SHIB have lost 7% and 6% respectively. However, other categories including AI tokens and Layer 2 solutions have also shed a lot of value.
Source: https://www.thecoinrepublic.com/2025/01/22/melania-trumps-melania-launch-tanks-trump-coin-by-28/