Introduction
The Trump family’s new meme coins, TRUMP Token and MELANIA Token, are causing a stir in the cryptocurrency world. Just days after their launch, they rose fast but then fell even faster, leaving some investors with big losses. Let’s break down what happened in simple terms.
The TRUMP Token’s Quick Rise and Fall
On January 18, two days before Donald Trump became the 47th President of the United States, he introduced the TRUMP token on the Solana blockchain. At first, it looked like a huge success. Its price jumped from just $6.24 to over $75, an increase of 840%! Its total value, or market cap, reached nearly $15 billion. People were excited, thinking it might keep going up. But by January 21, the TRUMP token had lost almost 57% of its value. It dropped to $33, leaving many investors disappointed.
One big investor, or “whale,” named “Ansem,” bought 194,799 TRUMP tokens for 9.38 million USDC. The average price they paid was $48.14 per token. However, when the price dropped, Ansem sold them for just $35.04 each, losing $2.55 million.
MELANIA Token Faces Trouble Too
The MELANIA token, named after First Lady Melania Trump, was launched on January 19. Like TRUMP, its price shot up quickly, reaching $13.73. But this didn’t last. A large number of people started selling them, which caused the price to drop. Now, the MELANIA coin is worth only $3.72, a 73% drop from its peak. One whale spent $5.1 million to buy 440,136 MELANIA tokens at $11.60 each. However, after the price crash, their investment was worth only $1.56 million. This means they lost $3.53 million.
Why Did The Token Prices Drop?
The sharp rise and fall of these tokens are common in the world of meme coins. Meme coins often gain value because of hype and excitement, not because they have strong real-world uses. When people started selling the them to make quick profits, the prices crashed. Some experts think the controversy surrounding these coins didn’t help. Critics have accused the Trump family of using then as a “cash grab.” Others argue that launching them tied to the President creates a conflict of interest.
What’s Next for Meme Coins?
Despite the losses, some people in the crypto community are optimistic. Ki Young Ju, the CEO of CryptoQuant, believes meme coins like TRUMP and MELANIA will remain popular during Trump’s presidency, which is expected to last until 2028. However, their future remains uncertain.
VR Soldier Thought
The TRUMP and MELANIA tokens show just how unpredictable and risky meme coins can be. While a few lucky investors made fast profits, many others suffered massive losses. This situation has sparked debates in the crypto world, especially about how politics is influencing cryptocurrency. Are tokens tied to public figures a good idea, or are they too risky?
