KEYTAKEAWAYS
- President Trump’s $TRUMP meme coin launch set the crypto market ablaze, showcasing the massive influence of political figures in cryptocurrency.
- $MELANIA Coin followed suit, drawing traders and pushing the token’s value past $5, but highlighting meme coins’ speculative nature.
- Despite the Trump family's crypto backing, experts warn about the volatility of meme coins and urge investors to tread cautiously in the unpredictable market.
CONTENT
The Trump family’s launch of meme coins, $TRUMP and $MELANIA, shook the crypto world. With soaring valuations and risks, this event highlights both crypto potential and danger.
On January 18, 2025, the cryptocurrency market was set ablaze by a massive storm. Donald Trump launched his meme coin, $TRUMP, instantly capturing widespread attention. Initially, this news sparked a wave of skepticism on social media, with many wondering if Trump’s account had been hacked.
(Source: X/Donald J. Trump)
But once the official confirmation arrived, the market’s reaction was explosive, igniting like a barrel of gunpowder.
THE METEORIC RISE OF $TRUMP
Trump’s meme coin features an iconic image of him raising both hands, shouting “FIGHT.” This wasn’t just another coin; it was a reflection of Trump’s persona.
In just a few hours, the market cap of $TRUMP rocketed from $700 million to $30 billion, with trading volume surpassing $1.3 billion. The market’s wild response left everyone astonished, though it also stirred up controversy and doubts.
(Source: CMC)
Early adopters were undoubtedly the biggest winners, with some reaping millions. But the market can be unforgiving. As $TRUMP’s price surged, other Trump-related meme coins collapsed, leaving many investors in ruin. The swift response from exchanges like Binance, which quickly listed $TRUMP futures, only fueled the frenzy further.
THE RISE AND RISK OF MEME COINS
Meme coins have recently gained significant traction in the crypto market, characterized by their extreme volatility and speculative nature. These coins often rise swiftly on the back of community fervor and celebrity endorsements but can crash just as fast with market sentiment shifts.
For $TRUMP, there was a mix of frenzied support and cautious analysis. Some investors viewed these coins as unregulated gambling, fraught with the risk of substantial losses.
Behind the market craze, was it faith in Trump himself or just a lust for short-term profits? $TRUMP, built on the Solana blockchain, seemed technically sound. However, the opaque token distribution and extreme price volatility raised red flags. Especially concerning was that 80% of the tokens were controlled by insiders, prompting skepticism.
The $TRUMP surge brought a spotlight to the Solana blockchain. SOL’s price hit new highs, with funds pouring in and investors even offloading Ethereum in favor of Solana. This surge highlighted Solana’s ecosystem’s vitality, with decentralized exchange volumes surpassing other chains, showing robust market dynamics.
(Source: Tradingview)
THE LAUNCH OF $MELANIA
Before the market could catch its breath, Melania Trump launched her meme coin—$MELANIA, or the “First Lady Coin.” On January 20, she announced this on social media platform X, providing a purchase link. Investors rushed in again, pushing $MELANIA’s price past $5 and its market cap beyond $5 billion.
(Source: X/ MELANIA TRUMP)
However, as swiftly as the market rose, it also saw dramatic swings. $TRUMP plummeted by 60% in just 30 minutes, Solana fell 20%, and even Bitcoin wasn’t spared, dropping 6%. This rapid market shift highlighted the short-sightedness and herd mentality of many investors.
THE MANIA BEHIND THE MARKET
This turmoil not only highlighted internal competition within the Trump family but also reflected the market’s intense frenzy over meme coins. The rapid market swings, seen within minutes, underscored the chaos.
Behind the Trump family’s crypto craze is their policy backing for the crypto industry. Trump appointed David Sacks as head of crypto and AI affairs, who declared at a “crypto ball” event: “The reign of terror on cryptocurrencies is over, and the era of American crypto innovation is just beginning.” This policy stance undoubtedly provides a solid foundation for the Trump family’s crypto ventures and raises market expectations for their future development.
Despite the short-term stellar performance of $TRUMP and $MELANIA, the high volatility and speculative nature of the crypto market cannot be ignored. The Kobeissi Letter warned that this kind of frenzied market behavior could pose significant risks, urging investors to remain cautious and avoid blind following.
Is this just a fleeting carnival or the start of a long-lasting revolution? The Trump family’s cryptocurrency saga is just beginning, with many uncertainties ahead worth watching.
▶ Buy Crypto at Bitget
CoinRank x Bitget – Sign up & Trade to get $20!
