Trump's Meme Coin Tanked Then Recovers

The cryptocurrency market experienced a whirlwind over the weekend with an unprecedented event—the launch of a meme coin by a sitting US president.

Donald Trump took to his official accounts on Truth Social and X to unveil what he called his "official" meme coin, urging his nearly 100 million followers to "join my very special Trump Community."

The announcement sparked widespread scepticism, with many questioning the coin's legitimacy and speculating that Trump’s accounts may have been compromised.

However, the project appears legitimate, as its website mirrors those used for Trump’s previous NFT collections, all managed by the same licensee, CIC Digital.

According to the website, the meme coin currently has a circulating supply of 200 million tokens, with a potential cap of 1 billion over the next three years.

Notably, 72% of the total supply is allocated to "creators and CIC Digital," raising concerns about centralisation.

Despite initial scepticism, Trump's TRUMP meme coin surged to a multi-billion-dollar market capitalisation within days, only to experience extreme volatility—plunging over 50% in mere hours before partially recovering.

The token’s price dropped from $73 to $38 before rebounding to $52, and at the time of writing, it stands at $47.57—an 78.85% increase in the past 24 hours, according to CoinMarketCap.

Melania Trump’s Toke Launch Stole TRUMP’s Thunder

Melania Trump has joined the cryptocurrency trend with the launch of her own meme coin, MELANIA, following in the footsteps of her husband.

The former First Lady announced the token's debut on Truth Social and X, sharing a link to its official website and contract address.

Shortly after, Trump's official X account amplified the news by reposting her announcement.

Despite the excitement, concerns have emerged over token distribution.

Blockchain analytics firm Bubblemaps reports that nearly 90% of the total supply is controlled by a single wallet, raising questions about decentralisation.

According to Dexscreener, the token is currently trading at approximately $8.07, with a market capitalisation of $8.79 billion.

The MELANIA token shares many similarities with the Official Trump coin in terms of structure and design. https://www.coinlive.com/news/donald-trump-s-inauguration-portrait-feels-like-a-villainous-callback-to

Out of the total supply, 45% is allocated for community distribution and liquidity on decentralised exchanges, while 20% is reserved for the project’s treasury, and 35% is allocated to the development team.

However, MELANIA’s vesting schedule differs significantly—team tokens will vest over 13 months with a 30-day cliff, compared to the longer schedules set for Trump’s token.

Melania’s token was launched by MKT World, LLC, a company she established to manage payments from speaking engagements and the sale of her NFT collections, as disclosed in financial filings.

The project's corporate structure closely mirrors that of the Official Trump meme coin, which was introduced by Fight Fight Fight LLC.

Interestingly, Melania’s token debut has drawn significant attention, even overshadowing her husband’s coin for the moment.

However, the heavy concentration of supply in a single wallet continues to fuel speculation about the project’s long-term viability.

Coinbase executive Conor Grogan suggested that while MELANIA is unlikely to be a rug pull, its launch may have been handled by a less coordinated team compared to the one behind the TRUMP token.

Community’s Diversified Reaction

The launch of the $TRUMP meme coin has sparked a sharp divide within the crypto community.

Supporters hail it as a pioneering step that could drive broader adoption and potentially ignite an altseason, with many praising Trump's embrace of digital assets as a strategic move to cement his influence in the space.

Social media platforms have been flooded with enthusiasm, welcoming Trump’s entry into crypto despite his prior involvement with World Liberty.

However, sceptics have been quick to voice concerns, dismissing the token as speculative gambling and cautioning against the risks tied to politically themed cryptocurrencies.

Blockchain investigator ZachXBT expressed doubts.

Monad’s Director of Growth, Kevin McCordic, questioned who is advising Trump’s team on these initiatives.

Grogan noted key differences between Melania Trump's token and the Official Trump token, highlighting that the former was launched from a non-multisig wallet previously active on the meme coin platform Pump.fun.

The controversy extended beyond the crypto community, drawing input from economist and Bitcoin critic Peter Schiff, who sarcastically proposed creating a strategic reserve for the token and mandating its inclusion in retirement plans—an idea met with mixed reactions.

He posted:

“It took Bitcoin four years to reach a $5 billion market cap. $TRUMP did it in one day.”

Eric Trump fuelled the hype, calling $TRUMP the “hottest digital meme on earth.”

Meanwhile, former White House communications director Anthony Scaramucci criticised the launch, calling it a troubling sign of corruption that tarnishes the crypto industry.

Bitcoin advocates have also weighed in, with Swan Bitcoin's Brandon Quittem and Zaprite’s Will Cole criticising the meme coin as a wealth transfer scheme benefiting older generations at the expense of younger investors.

Riot Platforms’ Pierre Rochard reinforced Bitcoin’s distinction from such speculative ventures, emphasizing its fundamentally different design and purpose.

Insider Trading Allegations

On 18 January, Bubblemaps uncovered a suspicious transaction linked to the TRUMP token, raising concerns of potential market manipulation.

According to onchain data, a crypto wallet received a $1 million deposit just four hours before the token’s launch.

Within the first minute of trading, the wallet acquired $5.9 million worth of TRUMP tokens, later offloading $20 million while still holding a staggering $96 million in tokens.

Further analysis revealed that these holdings were funnelled through an intermediary wallet and distributed across 10 additional wallets, which are now actively selling on Solana-based DEXs.

This trading activity has sparked speculation about coordinated efforts to influence the token's market performance.

Preetam Rao, CEO of Web3 security firm QuillAudits, voiced concerns over the token’s allocation structure and underlying objectives, emphasizing the need for transparency as the TRUMP memecoin continues to capture public attention.

Rao expressed:

“Eighty percent of the supply is locked for CIC Digital, a company owned by the Donald Trump Revocable Trust. This is the same entity that launched Trump NFT Trading Cards three years ago. The website says it’s ‘not an investment but a show of support.’”

Rao noted that the top 10 holders own 89.06% of the supply, and there’s no clarity on the liquidity pool burn status.

He said:

“Interestingly, the token was launched in an Asian morning time zone. It feels like this is just a way for Trump to make money.”

He added:

“We can see some insider traders involved, but I feel if the US government is supporting projects to set a roadmap for innovation in the country. Maybe it’s a rug pull, but it lays the foundation for innovation.”

Is Trump’s foray into the crypto space a calculated move, or a risky gamble in an already volatile market?