What is Trump Meme Coin Saga?
Of course, everyone is asking this question. So, let’s know about it here.
Meme coins have become a fascinating subset of the cryptocurrency space where they can produce spectacular price jumps in hours or even days.
These tokens often take the advantage of social media phenomena and pop culture references, which can attract a diverse group of investors.
Yet, the lure of easy money involves tremendous risks, because many meme coins inevitably crash, leaving investors disillusioned and out pocket.
Alright, time to talk in-depth about Trump Meme coin saga in this article.
The Trump Meme Coin Saga
The weekend leading up to Donald Trump’s inauguration was anything but a calm before the big storm. This was accompanied by the launch of Official Trump, a meme coin by the president-elect. This token quickly gained attention of the public, quickly increased in value and achieved the market capitalization of nearly $15 billion in only a couple of days.
For a time, it was very close to cracking into the top 10 largest cryptocurrencies by market value, ahead of traditional meme coins, such as PEPE and SHIB.
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TRUMP’s Price
TRUMP’s price reached at around $75, based on the buzz around its release and the recognizability of Trump as political figure. Yet, the picture changed radically when Melania Trump launched her own meme coin on Sunday evening.
This new token, dubbed MELANIA, surged to a high of $13, leading to a significant drop in TRUMP’s value. Within a few hours TRUMP imploded with 50% dropping its valuations to hundreds of billions USD gone and opened a discussion on the future of such hype-based assets.
Also read: 3 Top New Meme Coins to Buy This Week that Could Make You Rich!
Market Reactions and Liquidations
The effects of TRUMP’s price crash went the whole way through the crypto market. Having just topped out at nearly $106 000 Bitcoin (BTC) subsequently dipped under $100 000 in less than an hour following the announcement. Most altcoins followed suit, with slide rates between 6% and 8%.
Notable cryptocurrencies such as SOL, DOGE, and others took significant hit as investor sentiment turned negative.
Liquidations Across the Market:
The widespread panic started a chain of liquidations throughout the market. In all, about $1.2 billion of positions were liquidated in a day, which wiped out trading of more than 400,000 traders. While Bitcoin accounted for the largest single liquidation event, TRUMP’s token saw around $140 million in liquidations as well—surpassing more established cryptocurrencies like SOL and DOGE.
Also read: Cryptocurrency Market Trends in Jan 2025
Ethical Concerns and Market Implications
After two members of the Trump family simultaneously started two meme coins, discussions about the ethical implications of their possible control of the cryptocurrency market have exposed themselves. Critics argue that such ventures could lead to conflicts of interest and raise concerns about market manipulation for personal gain.
High-profile politicians participation in speculative asset investments can lead to distortion of market dynamics and a loss of investor confidence.
Also read: The 4 Crypto Tokens Investors Can’t Afford to Ignore
Personal Analysis
The story of “TRUMP and MELANIA” meme coins is a case study in the volatility of meme-powered cryptocurrencies. Although it is possible for these tokens to generate hype and drive big short-term gains, investors face significant risks when engaging with them.
The meteoric rise and fall of these coins demonstrate the power of political actors to manipulate market perception and lay the groundwork for opportunities and risks within the market for traders.
Since meme coins are increasingly uncertain between entertainment and investment, it is very important for participants in this area that they handle them with care.
(Source: CoinMarketCap)
