The cryptocurrency world was buzzing this past weekend as Donald Trump’s “official” memecoin, Official Trump (click to see details), made a much-anticipated entrance ahead of his presidential inauguration. The token experienced a rapid surge in value, followed by a sharp decline. The excitement didn’t stop there, however. On January 20, Melania Trump, the incoming First Lady, unveiled her own meme coin, $MELANIA, late on Sunday evening in the US. Her announcement contributed to a significant loss in value for her husband’s $TRUMP token.
Melania Trump Launches $MELANIA Coin
“The Official Melania Meme (click to see details) is now live! You can purchase $MELANIA today!” Melania proclaimed on her social media, just before Trump’s victory rally in Washington, DC. Her declaration immediately grabbed the attention of traders, sending the price of $MELANIA soaring to over $5 and pushing its market capitalization to more than $5 billion, according to Forbes. Encouraging her followers to invest, Melania’s token quickly gained momentum in the crypto market.
$TRUMP Token Takes a Nosedive
Initially, Donald Trump’s memecoin saw a meteoric rise, with its market cap reaching $14 billion and securing a spot among the top 20 cryptocurrencies. However, the launch of $MELANIA had a dramatic effect on the market. Within moments of Melania’s coin going live, $TRUMP’s value fell by almost 40%, as many investors liquidated their positions in favor of the new $MELANIA token. Reports indicated that $TRUMP’s market cap lost $7.5 billion in just 10 minutes after the $MELANIA announcement.
A New Era for US Cryptocurrency Innovation
David Sacks, a crypto advisor appointed by Donald Trump, highlighted that the United States is entering a new chapter in the cryptocurrency space, saying, “The reign of terror against crypto is over.” This signals a potential shift towards a more favorable regulatory environment for digital assets under the new administration.
A Crypto-Positive Presidency
Trump’s favorable stance toward cryptocurrency has sparked significant market optimism, with Bitcoin reaching record highs. Following his win in the 2024 presidential elections, Bitcoin broke the $100,000 barrier, while the global cryptocurrency market grew by $1.8 trillion throughout the year. Notably, $1 trillion of this increase occurred after Trump’s election victory.