$TRUMP and $MELANIA Meme Coins Shake the Crypto Market

On the eve of Donald Trump’s inauguration as the 47th U.S. President, he and First Lady Melania Trump launched their respective meme coins, $TRUMP and $MELANIA, sending shockwaves through the crypto market.

• $TRUMP hit a fully diluted valuation (FDV) of $72 billion within hours.
• $MELANIA surged over 12,000%, according to DexScreener data.

However, the launch siphoned liquidity from the broader crypto market. Bitcoin (BTC) held steady, while major altcoins like Dogecoin (DOGE) and Shiba Inu (SHIB) dropped 7% and 6%, respectively. Pepe Coin (PEPE) suffered even more, falling 12.6%, per CoinGecko.

Reactions From the Crypto Community

Excitement Over $TRUMP’s Momentum

The debut drew both excitement and criticism, with figures like Arthur Hayes, co-founder of BitMEX, cheering on traders:

“Degens, let’s celebrate the emperor by sending his meme coin to 100 Billy by Monday,” he posted on X.

Criticism Over Ethics

Others condemned the move as exploitative. Coffeezilla, a YouTuber known for exposing crypto scams, criticized the tokenomics:

“80% of tokens vest to insiders DURING the presidency… should be a crime, but crime is legal now, I guess?”

William Scythe, founder of Alpha Prime Capital, accused Trump of putting personal gain over public service:

“This is a sad day for America when the President realizes he can scam people himself… scamming his MAGA cult with $TRUMP coin,” he wrote.

Issues With $MELANIA

Melania’s $MELANIA faced sharper criticism due to its handling. Conor Grogan, Coinbase’s head of product operations, revealed:

“This token was handled by a less professional team… the creator wallet was funded via a Solana memecoin launchpad.”

Broader Implications

The meme coin launches also sparked discussions about regulatory changes. Caitlin Long, CEO of Custodia Bank, highlighted potential tax policy shifts:

“Trump now has a real incentive to change the taxation of #crypto in the US,” she tweeted.

However, critics argued the move represented a step backward for crypto adoption. ZeroLend co-founder Gafoor Khan lamented:

“This isn’t onboarding. This isn’t education. This isn’t how we build a better future. We have to do better.”

Market Speculation

Amid the backlash, optimism about the long-term market impact persisted. Daan Crypto, a trader, noted:

“I think the market might enjoy this more than you think in the weeks to come. Especially if they bring the Trump coin to several chains, which would make the entire market go crazy.”

The launch of $TRUMP and $MELANIA marks a pivotal and polarizing moment for the crypto industry. As excitement, criticism, and speculation swirl, the broader implications for regulation and market dynamics remain uncertain.