Donald Trump Family Meme Coins Plummet During Inauguration: $Melania Drops to $790M, $Trump Sees Market Cap Halved
The inauguration of Donald Trump as the U.S. president marked a turbulent day for the Trump family’s meme coins, $TRUMP and $MELANIA.
Both tokens experienced dramatic declines in market value during the high-profile event.
According to Coingecko, Melania Trump’s token, $MELANIA, saw its market capitalization plummet from $2 billion to $790 million, while Donald Trump’s $TRUMP token halved in value, settling at approximately $6.86 billion.
Trump’s $MELANIA Token Surges After Launch
The sharp downturn followed a brief peak fueled by anticipation surrounding Melania Trump’s rival entry into the cryptocurrency market with the launch of $MELANIA.
As of now, both tokens remained deep in the red.
According to data from CoinMarketCap, TRUMP is trading at $34, down by around 40% over the past day.
MELANIA has taken a harder hit, trading at just over $4, down by more than 60% over the past day.
The broader cryptocurrency market, however, appeared resilient.
CoinMarketCap reported a 0.64% increase in the global crypto market cap, reaching $3.53 trillion.
Bitcoin, which dominates the market with a 57.69% share, is trading at around $102,000, down from its all-time high of $109,000 but maintaining a strong position above the $100,000 mark.
Trump’s campaign promise to become a “crypto president” has fueled optimism in the sector, with expectations of favorable policies and federal Bitcoin initiatives.
Despite these promises, Trump’s first day in office brought no immediate crypto-related announcements, leading to a pullback from the speculative highs driven by inauguration anticipation.
Details from the official Trump token website indicate that 80% of $TRUMP coins are owned by Trump-affiliated entities, CIC Digital and Fight, Fight, Fight.
The meme coins were introduced months after the September 2024 launch of World Liberty Finance, a decentralized finance (DeFi) platform spearheaded by Trump and his sons.
DeFi platforms facilitate peer-to-peer trading, lending, and borrowing of digital assets using automated protocols.
Ethical and Regulatory Implications
The steep declines in the price of Trump family meme coins have sparked debate over the ethical and regulatory implications of a sitting president promoting such ventures.
“While it’s tempting to dismiss this as just another Trump spectacle, the launch of the official Trump token opens up a Pandora’s box of ethical and regulatory questions,” Justin D’Anethan, an independent crypto analyst based in Hong Kong, told Reuters.
Similarly, cryptocurrency lawyer Preston Byrne, in a January 10 blog post, predicted a high likelihood of legal challenges to the tokens, citing potential losses for investors.
The Trump Organization has maintained that Donald Trump will transfer day-to-day management of his business ventures to his children, addressing conflict-of-interest concerns as he assumes the presidency.
However, the intersection of politics and crypto continues to raise critical questions as the Trump family’s involvement in digital assets evolves.
As reported, Trump is expected to prioritize executive orders addressing crypto de-banking and revising a controversial bank accounting policy.
The anticipated orders include a repeal of a policy introduced under the Biden administration, requiring banks holding cryptocurrency to list the digital assets as liabilities.