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Crypto Reporter
Shalini Nagarajan
Crypto Reporter
Shalini Nagarajan
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President-elect Donald Trump launched a digital token over the weekend that drew billions in trading volume initially. However, it plunged on Monday before his inauguration, disrupting the crypto market.
The Official Trump ($TRUMP) token launched on Solana on Jan. 18 and quickly soared to over $15b in market capitalization by Saturday. However, by Monday, it dropped to $9b, wiping out $6b in value.
Trump returns to the White House on Jan. 20. Investors will focus on his inauguration speech to gauge his immediate policy plans.
Trump Meme Coin’s $9B Slide Sparks Investor Fears of Market Manipulation
Meme coins tied to high-profile individuals or events are famously volatile. The drop to $9b could stem from investors cashing out profits, doubts about the token’s long-term value and the speculative nature of meme coins.
The $TRUMP website shows that CIC Digital, linked to the Trump Organization, and Fight Fight Fight, its co-owned entity, hold 80% of the meme coin. This concentrated supply could spark fears of market manipulation or a mass sell-off after lock-up periods, potentially driving the price down.
On Monday, 10X Research said that $TRUMP became Binance’s most actively traded coin. Its 24-hour trading volume hit $6.3 billion, surpassing $SOL’s $5.4 billion and even $BTC’s $5.1 billion.
“While many dismiss $TRUMP as just another meme coin, it is more accurately classified as a ‘fan token.’ Holders use it to celebrate the market gains following his November election and express support for potential crypto-friendly policies under Trump’s new administration,” the firm said.
As a fan token, it potentially provides utility by offering airdropped perks like exclusive event access, news and other gated benefits directly to the holders’ wallets, it added.
Melania’s Meme Coin Debut Adds Fuel to the Trump Crypto Movement
Trump’s official social media accounts seem to confirm the token’s legitimacy, first on Truth Social and later on his official X/Twitter account. However, if the “Official Trump” token is a scam, it could go down as one of cryptocurrency’s largest and most elaborate frauds.
Trump’s meme coin launch comes at a crucial time, as he is expected to sign an executive order soon after taking office to make crypto a national priority. Reports suggest he plans to address crypto de-banking and revise a controversial bank accounting policy through executive orders.
Meanwhile, over the weekend, Melania Trump launched her own meme coin, MELANIA, following her husband’s crypto initiative. The coin’s website describes Melania Memes as fungible crypto assets tracked on the Solana blockchain.
