The memecoin market was thrown into another roller coaster on January 19, 2025, as First Lady Melania Trump launched her MELANIA token—just 48 hours after the debut of Donald Trump’s controversial TRUMP token on Inauguration Eve.
According to The Kobeissi Letter on X, the timing of the launch sent shockwaves through the market, triggering a dramatic 55% plunge in TRUMP’s value and erasing $7.5 billion in market cap within minutes.
On 19th January during President-elect Donald Trump’s victory rally, First lady Melania Trump announced MELANIA on X (formerly Twitter).
Within minutes, Donald Trump reposted her announcement during his Victory Rally, triggering an unexpected chain reaction in the crypto markets.
Until then, TRUMP had been holding steady, buoyed by a strong buyer-to-seller ratio of nearly 3:1.
Following the MELANIA launch, seller volume surged, overwhelming demand for TRUMP.
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In just one hour, sellers flooded the market with $352 million worth of TRUMP, while buyers only accounted for $245 million—a staggering reversal.
MELANIA Triggers Massive TRUMP Sell-Off
Flow data revealed colossal sell orders during the chaos. Multiple transactions exceeded $1 million, with some topping $5 million in single trades.
The sell-off was so intense it triggered a ripple effect across the market, even impacting Solana (SOL), which saw its price plummet 20% within minutes.
Overall, the memecoin sector lost over $10 billion in market capitalization during the MELANIA launch window, leaving $TRUMP holders scrambling for answers.
Before the launch of MELANIA, TRUMP maintained a healthy buyer-to-seller ratio of 2.9x, supported by a growing community of 824,017 holders.
The balance shifted drastically as demand for TRUMP collapsed. By the end of the day, the buyer-to-seller ratio had fallen to just 1.3x, intensifying the token’s decline.
The sharp imbalance underscores the volatile nature of memecoins, where momentum often dictates market movements.
In less than 48 hours, TRUMP had risen as one of the most talked-about memecoins, with over $2 billion in trading volume recorded in a single day.
However, the launch of MELANIA disrupted its momentum, as attention and liquidity shifted to the First Lady’s token.
What’s Next for TRUMP Holders?
The memecoin space thrives on hype and momentum, and TRUMP’s crash illustrates the fragility of its gains.
With 55% of its value erased and the market still reeling, attention will turn to the token’s ability to regain buyer confidence.
For now, Melania Trump’s MELANIA is in the spotlight. Whether this marks a passing trend or the start of a larger memecoin rivalry remains to be seen.
One thing is clear: in the unpredictable world of memecoins, a single announcement can spark chaos.
Source: https://www.thecoinrepublic.com/2025/01/20/trump-token-tanks-55-as-sellers-flee-to-first-ladys-melania-meme/