Melania trumps Donald in meme coin race, $MELANIA grabs $5 bn in market cap

Melania Trump's $MELANIA meme coin launch sparked a crypto frenzy, hitting a $5 bn market cap and causing a 40 per cent crash in Donald Trump's $TRUMP token within minutes

The cryptocurrency community witnessed a whirlwind of activity this weekend as Donald Trump’s ‘official’ memecoin, $TRUMP, made a high-profile debut ahead of his inauguration. The coin saw a surge in value before a dramatic crash. Adding to the frenzy, incoming First Lady Melania Trump introduced her own meme coin, $MELANIA, on January 20 (late Sunday in the US), causing her husband’s $TRUMP token to lose significant value.

Melania Trump’s ‘$MELANIA’ meme coin  

“The Official Melania Meme is live! You can buy $MELANIA now,” Melania announced on her social media platforms shortly before Trump’s victory rally in Washington DC. Her announcement quickly captured the attention of traders, propelling the coin’s price to over $5 and achieving a market cap exceeding $5 billion, as reported by Forbes. The First Lady encouraged her followers to invest in her token, which gained immediate traction in the market.

$TRUMP token suffers a crash

Donald Trump’s memecoin initially soared in value, reaching $14 billion market cap, placing it among the top 20 cryptocurrencies. However, the launch of $MELANIA triggered an abrupt market shift. Within minutes of the announcement, $TRUMP’s value plummeted by nearly 40 per cent, with many investors selling their holdings to jump on the $MELANIA bandwagon. Analysts reported that $TRUMP’s market cap dropped by $7.5 billion within just 10 minutes following the release of Melania’s token.  Aslo Read: Donald Trump inauguration LIVE updates

New chapter for US crypto innovation  

David Sacks, a crypto advisor appointed by Donald Trump, emphasised that the US is entering a new phase of cryptocurrency development, stating, “The reign of terror against crypto is over.” This suggests a more supportive environment for digital assets under the new administration.

A crypto-friendly presidency  

Donald Trump’s pro-cryptocurrency stance has sparked a wave of market optimism, driving Bitcoin to record-breaking levels. Following his victory in the November 2024 elections, Bitcoin surged past $100,000, with the global crypto market adding $1.8 trillion in value over the year. Notably, $1 trillion of this growth occurred after Trump’s election, according to data from CoinGecko.

 

The incoming administration plans to solidify its support for the digital asset sector. Trump has outlined plans to issue an executive order prioritising cryptocurrency, establish a national Bitcoin reserve, and form a crypto advisory council aimed at reducing regulatory obstacles. These announcements further boosted Bitcoin’s value, pushing it past $105,000 on Friday last week, the highest price in nearly a month.

 

The $TRUMP coin has also joined Trump’s expanding merchandise portfolio, which includes luxury watches, silver coins, limited-edition sneakers, and NFT trading cards. Reports indicate these ventures have generated significant revenue, including $7.2 million in NFT licensing fees alone.

Trump’s second inauguration  

Donald Trump will be sworn in as the 47th President of the US on January 20, marking a historic comeback for the Republican leader. He arrived in Washington DC on Saturday evening to celebrate with family, supporters, and political allies ahead of the inauguration.

 

This inauguration holds symbolic significance, as it marks the first time since Ronald Reagan’s 1985 second-term ceremony that the event will take place inside the US Capitol.

 

[With agency inputs]