WASHINGTON, DC: Donald Trump, the incoming President of the United States, and his wife, Melania Trump, have shaken the cryptocurrency world with the back-to-back launches of their meme coins, $TRUMP and $MELANIA.
The coins have captured global attention, with $TRUMP hitting a market capitalisation of $68 billion shortly after launch and $MELANIA following with a $13 billion valuation.
These releases, just days before Trump’s historic return to the White House have sent shockwaves through digital markets and captivated investors worldwide.
What is a meme coin?
Meme coins are a niche category of cryptocurrencies often tied to internet trends or cultural phenomena. Unlike mainstream cryptocurrencies such as Bitcoin or Ethereum, meme coins generally lack intrinsic utility and derive their value from community enthusiasm and speculative trading.
While offering high rewards, these tokens are also known for their extreme price volatility, making them a high-risk investment.
The Trump and Melania coins
The $TRUMP token debuted with a starting price of $25 on Friday and quickly surged to over $70 within hours, reaching a market cap of $68 billion by Sunday. Hosted on the Solana blockchain, the coin currently has a circulating supply of 200 million, with plans to expand to 1 billion over three years.
Melania Trump’s $MELANIA token, launched hours later, also made waves but caused unexpected turbulence in the market. Moments after her announcement, $TRUMP’s value plummeted by over 50 percent before recovering to $64. Meanwhile, $MELANIA gained traction, reaching a market cap of $13 billion within hours.
Both coins have been strategically designed to maximise long-term value. Trump-linked companies, CIC Digital LLC and Fight Fight Fight LLC, control 80 percent of $TRUMP’s supply under a three-year unlocking schedule, ensuring gradual distribution. Similarly, the $MELANIA coin operates under a managed release system overseen by Melania’s team.
Impact on crypto market
The dual launches brought unprecedented liquidity into the cryptocurrency market, prompting investors to shift assets into these tokens. Blockchain analysts noted that the excitement temporarily disrupted other major cryptocurrencies, with significant sell-offs recorded in altcoins. Despite this, Bitcoin surged to a record $108,000, boosted by optimism surrounding Trump’s pro-crypto policies.
“This is unlike anything we’ve seen before,” stated analysts from The Kobeissi Letter. “The $TRUMP coin erased $7.5 billion in market cap within minutes, only to recover spectacularly. The volatility is both thrilling and unnerving.”
Crypto-friendly policies ahead
Trump’s return to the White House signals a shift towards cryptocurrency-friendly policies. The president-elect has pledged to reduce regulatory burdens on digital assets and establish a national Bitcoin reserve. His appointment of Howard Lutnick, a known crypto advocate, as Secretary of Commerce underscores his administration’s commitment to fostering the industry’s growth.
Although the $TRUMP coin’s website claims it is “not politically affiliated,” its ties to Trump-linked entities suggest it will remain a focal point in discussions about the intersection of politics and cryptocurrency.
Trump’s inauguration
The launches come as Donald Trump prepares to return to the White House as the 47th President of the United States. At 78 years old, Trump is set to become the oldest president in US history. The inauguration will take place at the Capitol Rotunda, featuring performances by Carrie Underwood and the Village People. Following the oath-taking ceremony, Trump will participate in military reviews, a congressional luncheon, and three inaugural balls.