In a surprising move that has sent ripples through the cryptocurrency market, incoming First Lady Melania Trump unveiled her own meme coin, $MELANIA, on January 19, 2025. This launch comes on the heels of President-elect Donald Trump’s introduction of his meme coin, $TRUMP, just days prior.
Melania Trump announced the release of $MELANIA on social media, stating, “The Official Melania Meme is live! You can buy $MELANIA now.” The token, which entered the market at just pennies, experienced a meteoric rise, trading at over $10 by Sunday evening.
The introduction of $MELANIA had an immediate impact on the $TRUMP coin. Following Melania Trump’s announcement, the $TRUMP coin’s market capitalization dropped by $5 billion, decreasing from $15 billion to $10 billion.
Both $TRUMP and $MELANIA are categorized as “meme coins,” a highly speculative type of cryptocurrency that often lacks inherent utility and is typically created based on a joke or parody. Despite their speculative nature, these coins have attracted significant attention and investment, leading to substantial volatility in their market values.
The rapid rise and subsequent fluctuations in the values of $TRUMP and $MELANIA have raised concerns among financial experts. Thomas Stelzer, a financial analyst, warned of the cryptocurrency’s volatility and potential for losses, emphasizing that $TRUMP’s value fluctuates rapidly. He also noted that a Trump-affiliated company holds 80% of the $TRUMP tokens, which could impact market stability.
Critics have also pointed out potential ethical implications of these ventures. The heavy insider ownership and the timing of the launches, coinciding with President-elect Trump’s return to office, have led to questions about conflicts of interest and the potential for exploiting supporters.
Despite these concerns, the enthusiasm surrounding these meme coins is palpable. Dave Portnoy, founder of Barstool Sports, reported making a $1 million profit by investing $500,000 in $TRUMP. He bought the coin at $24.80 a share and sold it after it rose by 200%. Portnoy announced his windfall on social media and promptly decided to bet his entire profit on the Buffalo Bills to win the 2025 Super Bowl.
As the Trumps prepare to return to the White House, their foray into the cryptocurrency market adds a new dimension to their public personas. While supporters view these ventures as innovative ways to engage with the public, skeptics caution against the potential risks and ethical dilemmas they present.