Since Donald Trump’s inauguration, Melania Trump’s cryptocurrency, MELANIA, has lost nearly 90% of its value.
Even the involvement of the US First Family in a memecoin does not ensure success, as cryptocurrency fans are discovering the hard way.
Even members of the US First Family are discovering the hard way that cryptocurrency enthusiastsAccording to data provided from CoinMarketCap, Melania Trump’s cryptocurrency, MELANIA, has lost about 90% of its value in the weeks following Donald Trump’s inauguration, while the president’s token, TRUMP, has witnessed a 75% decline in value from its peak.
In general, memecoins have no intrinsic value and are quite volatile. According to Stephane Ouellette, CEO and co-founder of FRNT Financial Inc., the tokens frequently rely on something getting viral, but it can be fleeting.
“This transience is reflected in TRUMP and MELANIA’s performances,” Ouellette stated. “Speculators have little incentive to hold these assets beyond time horizons measured in mere days because their purposes beyond their momentary novelty are unclear.”
The cryptocurrency community’s response to the president’s venture into memecoins was not entirely uniform. While some felt it harmed the sector at a time when it is attempting to look more credible, others said it demonstrated his dedication to making cryptocurrency a priority.
The president revealed his memecoin in a TruthSocial post on January 17. After Melania Trump released her own coin two days later, the token saw drops after reaching over $70. The Solana blockchain was used to distribute both tokens.
Up to $2.1 billion was the market value of the first lady’s token. However, the token currently trades for about $1.50 after hitting its highest point ever, $13.73.
According to Joe McCann, founder and CEO of Asymmetric, Trump’s actions could impact all markets, including cryptocurrency, even if this kind of price decline is typical for memecoins.
“Unlike other memecoins, you have the actual president of the United States, who is very skilled at generating online controversy that can affect the price of his token directly or indirectly, whether you like it or not,” McCann stated.
The president’s currency is issued by CIC Digital LLC and Fight Fight Fight LLC, two companies associated with Trump. Requests for comment were not immediately answered by CIC Digital. The first lady’s coin’s Melania-affiliated issuer, MKT World LLC, and Fight Fight Fight were not available for comment.
According to risk modeling firm Gauntlet, the Trump token has probably produced at least $11.5 million in fees for businesses associated with the president since its introduction. However, Bloomberg data shows that the majority of wallets that purchased the token made no more than $13.
