Trump and Melania memecoins crash amid profit-taking and wider crypto market uncertainty

Quick Take

  • The cryptocurrency market experienced notable volatility, with the TRUMP and MELANIA memecoins plummeting by 26% and 54%, respectively, in the past 24 hours.
  • The downturn comes amid heavy profit-taking and disappointment over the absence of pro-crypto policies in Trump’s inauguration speech.

The cryptocurrency market has experienced a turbulent 24 hours, as memcoins tied to U.S. President Donald Trump and First Lady Melania Trump saw sharp declines following Monday’s inauguration. Officially endorsed by the Trump family, the Official Trump (TRUMP) and Melania Meme (MELANIA) tokens, which debuted just days ago, have plummeted amid heavy profit-taking and broader market weakness.

The TRUMP token plunged 26% to about $39, while the MELANIA token tumbled 54% to $4.56 over the past day, according to data from Coingecko. These tokens initially fueled excitement among Trump supporters and crypto enthusiasts immediately after the launch but have faced intense volatility.

The declines come after Trump's inauguration failed to deliver any immediate announcements regarding his campaign promise to establish a Strategic Bitcoin Reserve.

Market sentiment soured as investors hoped for clearer signals of pro-crypto policies. While President Trump signed several executive orders on his first day, none addressed digital assets, leaving some bulls disappointed. Trump’s vocal support for bitcoin during the 2024 election cycle had raised expectations of significant action in the crypto space early in his administration.

Bitcoin, the world’s largest cryptocurrency by market cap, faced headwinds over the past day, declining 4.3% to around $103,600 in early trading, according to The Block’s Price Page. Bitcoin has shown relative resilience compared to the volatile altcoin market, where leading tokens like Solana and Cardano dropped 7% and 8%, respectively, over the same period. Bitcoin’s current price remains about 5.5% below its record high of $109,000, which was reached on Sunday.

Broader market conditions contributed to the sell-off, with significant liquidations across the cryptocurrency space. Over the past 24 hours, 235,490 traders were liquidated, resulting in total losses of approximately $626 million, according to Coinglass. Long positions accounted for $453 million of the liquidations, highlighting a sudden shift in market sentiment.

Surge in scam Trump-themed tokens and dApps

Adding to the challenges, data from blockchain security firm Blockaid highlighted a sharp rise in malicious activity tied to Trump-themed tokens that have no association with the sitting president.

According to Blockaid CEO Ido Ben-Natan, the launch of the Official Trump memecoin coincided with a 206% spike in malicious tokens bearing Trump-inspired names and a 14x increase in impersonator decentralized applications. 

"As for the broader impact on the crypto industry, scams are an unfortunate byproduct of innovation and growth," Ben-Natan told The Block. "If anything, the increasing sophistication of attackers underscores the growing value of the onchain economy."


Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Brian McGleenon is a UK-based markets reporter for The Block. He has worked as a financial journalist and producer for multiple news outlets over the years, such as Fuji Television, The Independent, Yahoo Finance, The Evening Standard, and The Daily Express. Brian is also a screenwriter and producer with one feature film produced and one in development with Northern Ireland Screen. Apart from web3 and cryptocurrency developments, he is also interested in geopolitics, environmental issues, artificial intelligence, and longevity research. Get in touch via email [email protected].

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