The incoming US first lady, Melania Trump, has followed Donald Trump’s lead by launching a multibillion-dollar cryptocurrency meme coin – briefly tanking the price of her husband’s coin in the process.
The price of the incoming president’s token, $Trump, had more than tripled in price to more than $70 (£57), giving it a total value of over $14bn shortly after its launch on Friday. However, the launch of his wife’s coin, $Melania, pared back those gains.
Trump, who will be inaugurated on Monday, posted on social media as his token launched: “It’s time to celebrate everything we stand for: WINNING! Join my very special Trump Community. GET YOUR $TRUMP NOW.”. According to the meme coin’s website, a Trump-owned company, CIC Digital LLC, will own 80% of the coin’s supply.
The token quickly broke into the top 20 of all cryptocurrencies. Such was the extent of the digital stampede, blockchain analysts said, it sucked liquidity from the rest of the market, causing other coins to fall in value, as traders sold their existing holdings to buy in to Trump’s.
Melania’s launch appeared to have a similarly unintended effect on the market, as some traders sold the Trump meme coin for a new target. “The Official Melania Meme is live! You can buy $MELANIA now,” she posted on X, which was reposted by Trump.
Shortly after the launch of $Melania, the price of $Trump fell by more than 50%, from $75 to $30, before recovering steadily in subsequent hours to about $64. The market capitalisation of $Melania reached as high as $13bn.
“This is beyond insane,” analysts at The Kobeissi Letter posted on X. “Less than 48 hours ago, Donald Trump launched $trump which just erased $7.5bn in market cap in 10 minutes. In the minutes around the launch of Melania Trump’s token, we saw massive sell orders in $trump.”
Separately, bitcoin – the world’s best known digital currency – reached a fresh record high, up 4% at $108,943 on Monday morning. The currency has made significant gains since Trump’s election victory in November.
A meme coin is a type of cryptocurrency inspired by trends such as internet memes with no inherent utility, and are often susceptible to price swings and crashes. A coin launched by “Hawk Tuah girl” Haliey Welch dropped 95% shortly after its release last month, falling from a $500m market capitalisation to $25m.
Meme coins have been described by traders as a “pure form of gambling” and akin to “buying a lottery ticket”.
Some crypto enthusiasts hailed the Trump meme coin’s release, saying it was symbolic of the incoming president’s support for an industry that felt unfairly targeted by the Biden administration. Trump has promised to usher in crypto-friendly regulations and picked its supporters for key government positions.
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But it has also stoked concerns of conflicts of interest and criticisms over an attempt to personally profit from political office.
Trump released batches of crypto trading cards during his presidential campaign, generating more than $4m for each release. His sons Eric Trump and Donald Trump Jr also launched a cryptocurrency venture, World Liberty Financial, in 2024, inciting concerns of an overt conflict of interest.
The Trump meme coin’s website included a disclaimer stating: “Trump memes are intended to function as an expression of support for, and engagement with, the ideals and beliefs embodied by the symbol ‘$Trump’ and the associated artwork, and are not intended to be, or to be the subject of, an investment opportunity, investment contract, or security of any type.
“GetTrumpMemes.com is not political and has nothing to do with any political campaign or any political office or governmental agency.”
Melania’s meme coin website has a similar disclaimer.
Article by:Source – Guardian staff
