Trump and Melania Meme Coins Spark Crypto Turmoil

Volatility rocked the crypto market this week after the Trump family officially entered the meme coin arena. President Donald Trump’s and First Lady Melania Trump’s tokens, both launched near his inauguration, soared initially but quickly tumbled as investors scrambled to assess their speculative nature.

Melania Meme (MELANIA) plummeted by more than 60% from its debut high, now sitting at a market cap of roughly $625.5 million, according to CoinGecko data. Meanwhile, Donald Trump’s Official Trump (TRUMP) token fell 43% to $45, down from a peak of $73.43. Both tokens had initially surged on significant hype, with TRUMP catapulting into the top 15 cryptos by market cap in just one day.

Billed as “collectibles and entertainment tokens,” the projects’ FAQs emphasize they are not financial instruments. However, the sharp losses have fueled debate about whether these high-profile meme coins merely serve to amplify speculation. MELANIA’s tokenomics reserve 35% for team vesting over 13 months, alongside a 20% allocation for treasury and community initiatives, further prompting questions about long-term stability.

Technical hiccups on the Solana network exacerbated the chaos. Phantom Wallet and Jupiter Exchange struggled to handle the surge in transactions, while allegations surfaced of insider wallets converting TRUMP holdings into major cryptocurrencies such as Solana (SOL), Ethereum (ETH), and possibly Bitcoin (BTC) at its sudden spike to $108,000.

World Liberty Financial (WLF), a DeFi platform affiliated with the Trump family, also made headlines by purchasing 439 Wrapped Bitcoin (wBTC), worth $47 million, amid the inauguration. This move increased its total wBTC holdings to 456.77 and brought its overall BTC and ETH acquisitions to nearly $100 million over two days.

Commenting on the token crashes, Digital South Trust founder Sudhakar Lakshmanaraja said it “underscores the dangers of hype-driven markets.” Meanwhile, hopes for crypto-friendly policies during Trump’s second term remain in limbo, as his initial executive orders notably excluded digital assets.