Trump introduced the ‘meme coin’ prior to his inauguration, generating billions in trading activity
Dr. Shamna T C
Donald Trump’s newly launched cryptocurrency, $TRUMP, initially made waves in the market, quickly surpassing a valuation of $10 billion as the former president assumed office for his second term. However, its price experienced a sharp decline, falling from $72.24 on January 20, 2025, to $27.48 by January 27, 2025.
Interestingly, Trump introduced the ‘meme coin’ prior to his inauguration, generating billions in trading activity and attracting widespread attention from supporters and critics alike. The launch of Trump and Melania-themed meme coins has brought a new level of excitement and unpredictability to the cryptocurrency market.
These coins, inspired by former President Trump and his wife, Melania, have sparked significant interest among investors and traders, reflecting the volatile and ever-evolving nature of the crypto industry. As of January 27, 2025, the value of the meme coin stands at $2.48.
Meme coins, typically driven by internet trends and cultural moments rather than groundbreaking technology, have become a distinct segment of the cryptocurrency space. Following in the footsteps of Dogecoin, Trump Coin and Melania Coin have tapped into the global fascination with the Trump family, leveraging social media and online communities to build value.
These tokens rely on viral marketing and active online discussions for their growth, with platforms like Twitter, Reddit and Telegram playing a crucial role in driving their popularity. The rise of Trump and Melania meme coins may pose a challenge to established cryptocurrencies like Bitcoin and Ethereum and well-known altcoins such as Dogecoin and Shiba Inu, all of which have already achieved substantial market presence and loyal user bases.
Trump’s significant online following and Melania’s fanbase have fuelled speculative trading around these coins, leading to price surges driven by sensationalism. However, this rapid growth is often followed by sharp declines, reflecting the highly volatile nature of meme coins.
The speculative nature of meme coins amplifies the inherent volatility of cryptocurrencies, with prices often swinging dramatically based on market sentiment. Trump Coin and Melania Coin, for example, experienced significant price spikes shortly after their launches, only to face steep corrections as the initial excitement faded. While this volatility presents opportunities for short-term gains, it also exposes investors to substantial risks, as influencers and public opinion can heavily influence market sentiment.
The lack of regulation in the cryptocurrency sector adds another layer of complexity, as meme coins are prone to market manipulation and misleading claims. Global financial regulators, such as the U.S. Securities and Exchange Commission (SEC), implemented measures under former chairman Gary S. Gensler to safeguard investors and mitigate associated risks. The newly appointed chairman, Mark T. Uyeda, may also uphold these guidelines to foster market growth while easing compliance requirements for investors. The emergence of Trump and Melania meme coins highlights the growing trend of celebrity-driven cryptocurrencies.
While these tokens showcase the potential of viral marketing in crypto, they also serve as a cautionary tale about the dangers of hype-fuelled investments. As the cryptocurrency market evolves, these coins may either lose relevance or pave the way for more celebrity-endorsed tokens. Regardless, their impact on market volatility underscores social media’s and public figures’ powerful influence on financial markets. The dramatic rise and fall of Trump Coin and Melania Coin illustrate both the coins’ potential and risks, warning investors to approach such tokens cautiously.
As regulatory frameworks become more robust, meme coins’ future may remain uncertain, though their role in shaping market dynamics is undeniable.
(The author is an Assistant Professor of Department of Economics at CHRIST Deemed to be University, Bangalore, Yeshwanthpur Campus. Views expressed are personal.)
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