Trump and the new era of memecoins
As $TRUMP and $MELANIA soar and crash, the crypto world braces for a new era of celebrity coins

Trump-related memecoins are dominating the crypto scene.
Days before his inauguration, President Donald Trump launched the official $TRUMP memecoin. Since its launch, the token skyrocketed in value and has been listed on major crypto exchanges like Coinbase and Binance.
My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING! Join my very special Trump Community. GET YOUR $TRUMP NOW. Go to https://t.co/GX3ZxT5xyq — Have Fun! pic.twitter.com/flIKYyfBrC
— Donald J. Trump (@realDonaldTrump) January 18, 2025
The excitement around $TRUMP intensified when First Lady Melania Trump followed up with her own memecoin, $MELANIA. While $MELANIA’s performance didn’t match $TRUMP’s initial surge, it still peaked impressively with a market cap of $2 billion.
The Official Melania Meme is live!
— MELANIA TRUMP (@MELANIATRUMP) January 19, 2025
You can buy $MELANIA now. https://t.co/8FXvlMBhVf
FUAfBo2jgks6gB4Z4LfZkqSZgzNucisEHqnNebaRxM1P pic.twitter.com/t2vYiahRn6
However, despite their initial successes, both tokens experienced significant price drops following Trump’s inauguration, as many traders cashed out their profits. This volatility underscores the risks associated with memecoins, even those tied to high-profile figures.
Fake tokens surge
The popularity of $TRUMP and $MELANIA has led to a flood of fake Trump-themed memecoins, confusing some investors. Among these was $BARRON, a token wrongly associated with the Trump family. Despite reaching a market cap of $450 million, $BARRON lost 95% of its value in just 24 hours.
This volatility has already led to significant losses. One trader reportedly lost approximately $1 million after investing in $BARRON. Lookonchain shared the trader’s activity, warning the community to avoid FOMO (fear of missing out) and to trade carefully.
Someone lost nearly $1M on $BARRON in just 2 hours due to #FOMO!
— Lookonchain (@lookonchain) January 20, 2025
Note that $BARRON was not launched by the #Trump family.
Currently, the only tokens officially issued by the #Trump family are $TRUMP and $MELANIA.
Avoid #FOMO and trade carefully! pic.twitter.com/bvCTQ2MXsq
Another fake Trump-themed token, $KAI, has also seen unusual activity. At the time of writing, $KAI has a 24-hour trading volume of $87.12 million, underscoring the hype surrounding these unofficial memecoins.
Meanwhile, rumors of a potential $USA coin have circulated widely. Eric Trump stepped in to clarify that this token is not connected to the Trump family, emphasizing that only $TRUMP and $MELANIA are officially endorsed.
.$USA coin has nothing to do with us. https://t.co/p4V6HXK1Ce
— Eric Trump (@EricTrump) January 18, 2025
A new era of memecoins?
The “Trump effect” is evident not only in the initial success of $TRUMP and $MELANIA but also in the surge of related coins and the broader influence of celebrity-backed memecoins. Trump has now become the first U.S. president to endorse and launch memecoins, marking a unique moment in the intersection of politics and crypto.
DONALD J. TRUMP WILL BE THE FIRST SITTING US PRESIDENT TO HOLD MEMECOINS pic.twitter.com/ODlNXDaKIT
— Arkham (@arkham) January 10, 2025
Ki Young Ju, CEO of data analytics firm CryptoQuant, remarked that “Trump opened the era of memecoins.” He explained that tokens with enough cultural relevance or "mindshare," like $TRUMP, have the potential to evolve into new forms, such as celebrity coins. These tokens highlight the growing role of community-driven assets in the crypto market.
Ju further noted that while traditional securities pool investments for productive activities, celebrity-backed memecoins like $TRUMP rely on their community’s collective action for value creation. The coin’s long-term success will depend on Trump’s activities during his presidency and the influence of his supporters.
Ju also warned about potential risks. “A community with goodwill could turn a memecoin into a valuable asset,” he explained. “But on the flip side, it would be terrifying if a cult or terrorist group used a memecoin to build a massive following.”
Trump Opened the Era of Meme Coins
— Ki Young Ju (@ki_young_ju) January 20, 2025
For retail investors, financial markets have always been about chasing memes. Following trends is nothing new—it’s just how they’ve always operated. Even the decades-long mantra of “invest in the S&P 500” that many followed for their pensions…
The rise of Trump-related memecoins underscores the growing influence of public figures in shaping the crypto landscape. As the “Trump effect” continues to unfold, these tokens highlight both the potential of community-driven assets and the importance of cautious investing in a rapidly evolving market.