Trump's memecoin crashes 50% as wife launches a rival cryptocurrency
What's the story
Melania Trump, the wife of US President-elect Donald Trump, has launched her own meme coin called $MELANIA. The news came just as her husband was set to kick off a rally in Washington celebrating his inauguration. "The official Melania Meme is live! You can buy $MELANIA now," she posted on X. The move sent Donald's meme coin, $TRUMP, crashing by 50%.
Market response
$MELANIA coin gains traction immediately after launch
According to Forbes, the newly launched $MELANIA coin attracted attention almost immediately, with its price skyrocketing to over $5. This drew investments away from Donald Trump's own cryptocurrency offering. The President-elect's coin skyrocketed upon its debut recently, reaching a staggering $14 billion in market value. However, within minutes of Melania's announcement, Trump's token's price had fallen by around 50% (to $41 each), resulting in a market cap loss of about $7.5 billion.
Recovery
Trump's token recovers after initial drop
After the first drop, Trump's token was able to recover. At the time of writing, the $TRUMP was trading at $45.14 with a market cap of $9.02 billion, accordig to data on CoinMarketCap. Meanwhile, Melania's coin was trading for $0.1137 each.
Twitter Post
You can buy $MELANIA now
The Official Melania Meme is live!
— MELANIA TRUMP (@MELANIATRUMP) January 19, 2025
You can buy $MELANIA now. https://t.co/8FXvlMBhVf
FUAfBo2jgks6gB4Z4LfZkqSZgzNucisEHqnNebaRxM1P pic.twitter.com/t2vYiahRn6
Wealth estimation
Crypto wealth could make the President-elect world's richest man
At his rally, Trump called these developments "all investments," adding that "Bitcoin has shattered one record after another." CoinGecko reports indicate that the total trading value of Trump tokens in the market was close to $13 billion before Melania's coin launch. This amount could have made Trump the world's richest man on paper, thanks to his massive holdings in both cryptocurrencies.
Regulatory outlook
Trump's crypto-friendly stance and future plans
Trump has promised to bring crypto-friendly regulations and nominated a number of pro-crypto people to his administration. David Sacks, a Trump-appointed crypto advisor, recently said that the "reign of terror" against crypto is over. The statement marks a new era of US cryptocurrency innovation under Trump. While fans and crypto enthusiasts praise Trump and his family's "business savvy" in their crypto ventures, critics have raised concerns about ethics and potential conflicts of interest tied to these assets.