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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

Joanna BuenconsejoProfile
By Joanna BuenconsejoJan. 21st - 4pm
3 min read
Melania Trump meme memecoin token crypto

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.

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.

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.

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.

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.

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.”

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.

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