Crypto: The Trump And Melania Memecoins In Free Fall After The Inauguration

On January 21, 2025, cryptocurrencies $TRUMP and $MELANIA experienced a drastic drop following Donald Trump’s inauguration as the 47th president of the United States. This situation highlights the risks associated with memecoins and intrigues analysts. Is this a revolt from the crypto market due to Trump’s oversight during his inauguration?

Trump Memecoins Are Collapsing!

On Friday, January 18, 2025, Donald Trump released 200 million tokens of his own crypto, causing a frenzy among investors. The price of the memecoin reached 75 dollars before plummeting following Melania Trump’s launch the next day. However, the excitement for these memecoins featuring the Trump couple was short-lived.

On the day after Donald Trump’s inauguration, the $Trump crypto lost 30% of its value, trading at 38 dollars on January 21, while Melania Trump’s ($Melania) crypto dropped by 60%, trading at 5 dollars. The market capitalizations of these cryptos also plummeted, falling to less than 8 billion dollars for the current president of the United States and to 900 million dollars for his first lady. Nevertheless, these launches may encourage other celebrities to follow suit, as Ryan Lee, chief analyst at Bitget, believes:

The launch also attracted new investors into the space, many of whom entered through the Moonshot platform, demonstrating its broad appeal. This event marks a new chapter for memecoins, as the involvement of a celebrity like Trump could motivate others to issue their own tokens, promoting diversification in the crypto meme market.

A Reaction from the Crypto Market?

The fall of memecoins $TRUMP and $MELANIA intensified after Donald Trump failed to mention cryptocurrencies in his inauguration speech. Analysts believe that this omission triggered a negative reaction from the crypto market, with investors interpreting this silence as a lack of support for digital assets.

As a result, the value of $TRUMP continued to decline, while $MELANIA also suffered a significant correction. This situation underscores the sensitivity of memecoins to public statements and market perceptions, making these assets particularly volatile and unpredictable.

The drop of memecoins $TRUMP and $MELANIA following Donald Trump’s inauguration highlights the extreme volatility of these assets. Public figures’ speeches heavily influence investors’ confidence in the crypto space. Trump’s upcoming statements will thus be closely monitored by investors, as they could significantly impact the value of these digital assets.