The Trump meme coin crashed after the inauguration of the US president

The crypto market witnessed significant volatility earlier in the week after the Trump family ventured into meme coins, with the tokens they had launched the day before plummeting in value.

First Lady Melania Trump’s newly minted meme coin, Melania Meme ( MELANIA ), is down 60% from its debut high on Monday following President Donald Trump’s inauguration.

MELANIA now sits with a market cap of $625.5 million a day CoinGecko data. Meanwhile, Donald Trump’s meme coin, Official Trump ( TRUMP ), also took a sharp hit, falling 43% to $45 from $73.43 earlier in the week.

The Solana-based coin surged 12,000% on its debut to $13.05, down from just $4.18, according to CoinGecko data.

Considered as a collectible and entertainment token, the project Frequently asked questions noted that it is “not a financial instrument or investment”. However, its sharp drop in value has raised questions about its speculative nature, despite the denials.

Designed for a gradual release, the meme coin’s distribution model is 20% treasury and community-initiated distribution, with 35% awarded to the team over 13 months.

On the contrary, TRUMP I noticed explosive growth at first, violation At its peak, it was among the top 15 cryptos by market capitalization, a day before his inauguration as US president.

However, the launch of MELANIA and the subsequent diversion of liquidity caused the Trump meme coin to plummet.

Infrastructure issues in Solana increased confusion, platforms like Phantom Wallet and Jupiter Exchange were overwhelmed by the surge in transactions.

“The launch of the TRUMP token marks an unprecedented moment in crypto markets, marking the first time a sitting president has been associated with the launch of memecoin,” Dan Hughes, Co-Founder and CTO Radixtold Deciphering.

Hughes noted that the MELANIA token was later launched, and team wallets converted TRUMP holdings into major cryptos. Solana (SOL), Ethereum (ETH), and possibly Bitcoin (BTC) – coinciding with its rise to $108,000, suggests a coordinated strategy that could destabilize market dynamics.

“This pattern of token launches by celebrities, particularly political figures, illustrates a trend in which influence and liquidity manipulation in crypto markets can overshadow fundamental value creation,” Hughes said.

In the midst of the meme coin chaos, World Liberty Financial (WLF), the DeFi platform associated with President Trump and his family, made significant moves in crypto during the inauguration.

The platform added 439 Wrapped Bitcoin (wBTC), valued at approximately $47 million, to its balance sheet, increasing its stake to 456.77 wBTC.

The purchase was part of nearly $100 million worth of transactions in BTC and ETH over two days.

talk to Decryption, Sudhakar Lakshmanaraja, Founder Digital South Trustsaid: “The collapse of Trump and Melania’s coin is a clear example of why substance should take precedence over hype in the cryptocurrency world.”

“This situation is a stark reminder that hype and speculation can only drive signs so far. Without a strong use case or utility, meme coins are vulnerable to volatility and market sentiment,” added Lakshmanaraja.

The meme coin turbulence comes against the backdrop of President Trump’s inauguration for a second term, where crypto-friendly policies are expected. remained unanswered.

Trump’s inauguration speech and initial executive orders dismissed digital assets, disappointing supporters who had hoped for regulatory clarity, the Bitcoin Reserve or the repeal of the SEC’s controversial “SAB 121” rule.

Edited by Sebastian Sinclair