Trump and Melania Accused of Greed After Memecoin Launches
Trump and Melania Launch Memecoins – In a move that has sparked widespread controversy and accusations of market manipulation, Donald Trump and his wife Melania Trump have been accused of orchestrating a “pump and dump” scheme following the launch of their respective memecoins. These tokens, $TRUMP and $MELANIA, saw a meteoric rise in market value shortly after their releases, prompting experts to raise concerns about the ethics behind their creation and the potential long-term impacts on the crypto market.
$TRUMP Token’s Initial Success and Sudden Drop
On January 18, 2025, Trump’s self-branded $TRUMP token made its debut, quickly attracting significant attention and soaring to a $15 billion market cap. The token was heralded by many as a successful branding move for the incoming US president, tapping into his widespread popularity and leveraging the power of cryptocurrency’s speculative nature.
However, the success of $TRUMP was short-lived. Just a day later, on January 19, 2025, Melania Trump launched her own memecoin, appropriately named $MELANIA. This new token sent shockwaves through the market, leading some to question whether the Trump family was attempting to capitalize on the crypto hype at the expense of investors.
Melania Trump’s Token and Its Impact on $TRUMP’s Value
The debut of $MELANIA was nothing short of spectacular, with the token briefly reaching a $13 billion market cap within just hours of launch. However, this surge was followed by a sharp decline, as its value halved to around $7.3 billion within hours, prompting a broader reflection on the sustainability of such tokens. As the price of $TRUMP fell by 38% in the wake of the $MELANIA launch, critics began to label the move as a clear indication of “pump and dump” tactics.
In response to these developments, Jim Bianco, president of Bianco Research, commented that Trump’s apparent greed had prompted him to release $MELANIA to double down on the success of $TRUMP, only to dilute its value and create doubts among investors. “He tried to double down with $MELANIA, but the market thinks it is a form of dilution,” Bianco stated on January 19.
Experts Weigh In: A ‘Grift’ or a Legitimate Business Strategy?
The fallout from the Trump family’s involvement in the memecoin market has prompted widespread criticism. Edward Dowd, founder of Phinance Technologies, described the entire episode as the “largest unforced error ever made before a Presidential inauguration,” calling into question the ethics behind such speculative financial maneuvers.
Meanwhile, financial analyst Michael A. Gayed took to X to declare that Trump’s credibility had been “totally destroyed,” further accusing the TRUMP token of being a “pump and dump” scheme. He and others noted the apparent rush to capitalize on the speculative frenzy surrounding the coins, calling into question whether insiders had made significant profits by selling off large portions of their holdings early.
The Potential for Market Manipulation
Delphi Labs co-founder José Maria Macedo echoed similar concerns, suggesting that those who helped launch $TRUMP may not have anticipated the rapid price surge. “They rushed to run it back with $MELANIA and made sure they filled their bags this time,” Macedo wrote in a post on January 19. According to him, this move could result in a loss of nearly $30 billion in value, suggesting that the actions could potentially involve criminal activities, although no formal charges have been filed.
Despite the criticisms, the $TRUMP and $MELANIA tokens have continued to attract attention. Together, they now boast a combined market cap of over $16 billion, a figure that underscores the speculative nature of the cryptocurrency market and the intense focus on celebrity-branded tokens.
Market Context: The Timing of the Token Launches
It is important to note that the launches of $TRUMP and $MELANIA took place amid a broader downturn in the cryptocurrency market. Bitcoin (BTC), the world’s leading cryptocurrency, experienced a 6% decline during the same period, falling from around $105,900 to below $99,650, according to TradingView data. This broader market downturn further adds to the complexity of evaluating the success or failure of these memecoins, as the volatility in the overall market could have played a role in their rapid fluctuations.
Is There a Future for Celebrity Memecoins?
Despite the criticisms and concerns over potential market manipulation, $TRUMP and $MELANIA have shown that celebrity-backed tokens can generate significant market interest. Whether this success can be sustained remains to be seen, as the volatile nature of the cryptocurrency market and the specific risks associated with speculative tokens may ultimately determine their longevity.
Some, like Ryan Selkis, former CEO of Messari and a vocal supporter of Donald Trump, have even gone as far as suggesting that Trump “fire” whoever was responsible for the $MELANIA token launch, indicating that the move may have been poorly executed or lacked sufficient strategic planning.
The Long-Term Impact on Crypto Markets
The $TRUMP and $MELANIA tokens have undoubtedly captured the attention of the crypto community, but they also raise significant questions about the ethics of celebrity involvement in the market and the risks posed by highly speculative, celebrity-branded assets. While the combined market cap of $16 billion is a testament to the power of branding and hype, it remains unclear whether these tokens will continue to thrive or if they will be remembered as a cautionary tale in the world of cryptocurrency.
As the crypto market continues to evolve, one thing is certain: the Trump family’s foray into memecoins will remain a highly scrutinized chapter in the history of digital finance.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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