Melania Trump made waves in the cryptocurrency industry when she launched her own Meme Coin coin called MELANIA, just days after her husband launched the TRUMP Token.
Just hours after its launch, MELANIA reached a valuation of more than $8 billion, causing both excitement and suspicion in the cryptocurrency community.
TRUMP Token Drops After MELANIA Launch
In one post on X on January 20, Melania Trump announced that the official meme MELANIA is officially live. According to Dexscreener, at press time, MELANIA is trading at $8.04 and has a market capitalization of over $8 billion.
TRUMP, the token launched by Donald Trump on January 18, has seen a significant increase in value. However, this Token dropped sharply right after the MELANIA Token launched.
At its peak, TRUMP’s market capitalization reached 15 billion USD. However, the price has dropped from $74.60 to $49.29 at press time, shedding nearly $5 billion from market capitalization.
Amid this backdrop, analyst Zack Guzman shared his thoughts on Twitter, offering a possible explanation for the rapid launch of both tokens.
“There is a very important reason why the Trump family released TRUMP and now MELANIA so quickly before the inauguration. And whether you love or hate Trump, the truth is that just one more day of delay could expose him to constitutional violations & impeachment (again),” Guzman speak.
He said the Trump family is racing against time before legal or constitutional issues can arise. Guzman added that the U.S. Constitution prohibits any president from “abusing his office to enrich himself.”
Plus, one website for meme coin MELANIA, shared by Melania Trump on X, suggesting that meme coins are not an “investment opportunity.” The website says the meme coins are intended as a “show of support.”
However, there were initial concerns that the Token was a scam, with many claiming that Melania’s X account had been hacked. Conor Grogan from Coinbase has speak that, “it is highly unlikely that the Melania Token is a ruse.”
“I guess this Token is handled by a different group than TRUMP. That token looks like professional market makers, and this token actually looks like college students,” he added.
Guzman share my personal experience with the volatility of transactions.
“I’m pretty sure my transaction on @RaydiumProtocol is completely gone after everything failed on @JupiterExchange. SOL was gone but nothing else was found. Strangely enough, there aren’t even any transactions onchain. Is this true?”
His frustration reflects skepticism surrounding the legitimacy and reliability of the tokens. Furthermore, Messari founder Ryan Selkis has call Trump fired the person who initiated the MELANIA project.
“1. They don’t know what they are doing. 2. They have caused you to lose a lot of money and goodwill. 3. They don’t have your best interests in mind,” Selkis explained on Twitter.
As the Trump family continues to experiment with the meme coin market, the rapid fluctuations in value and controversial nature of these launches are raising concerns.