Melania Trump made waves in the crypto industry by launching her own coin, MELANIA, just days after her husband launched his TRUMP token.
Within hours of its launch, MELANIA reached a valuation of over $8 billion, sparking both excitement and suspicion within the crypto community.
TRUMP Token Falls After MELANIA Launch
In a post on X on January 20, Melania Trump announced that the official MELANIA meme was live. According to Dexscreener, MELANIA was trading at $8.04 at press time and had a market cap of over $8 billion.
TRUMP, the token launched by Donald Trump on January 18, had previously experienced a meteoric rise in its value. But the token saw a dramatic decline as soon as the MELANIA token was launched.
At its peak, TRUMP’s market capitalization was $15 billion. However, its price quickly fell from $74.60 to $49.29 at press time, wiping nearly $5 billion from its market cap.
Amid all this, analyst Zack Guzman shared his thoughts on Twitter, offering a possible explanation for the rapid launch of both tokens.
“There is a very important reason why the Trumps are launching TRUMP and now MELANIA so quickly before the inauguration. And whether you love or hate Trump, the fact is that waiting another day could have exposed him to constitutional violations and impeachment (again),” Guzman said.
He suggested the Trumps were racing against time before possible legal or constitutional problems arose. Guzman added that the US Constitution prohibits any president from “abusing his office to enrich himself.”
Additionally, a website for the MELANIA meme coin, shared by Melania Trump on X, showed that meme coins are not an “investment opportunity.” He said the meme pieces are intended to be an “expression of support.”
Nonetheless, there were initial concerns that the token was fraudulent, with many claiming that Melania’s X account had been hacked. Coinbase’s Conor Grogan, however, said: “The Melania token is very unlikely to be a rug grab.”
“I assume this token was run by a different team than TRUMP. This one looks like professional market makers, this one honestly looks like college kids,” he added.
Guzman also shared his personal experience with the volatile nature of transactions.
“I’m pretty sure my trade on @RaydiumProtocol completely evaporated after everything failed on @JupiterExchange. $SOL is gone but nothing else is found. Oddly, not even an on-chain transaction. Is this shit real?
His frustration reflects the skepticism surrounding the legitimacy and reliability of the tokens. Additionally, Messari founder Ryan Selkis called on Trump to fire whoever started the MELANIA project.
“1. They don’t know what they’re doing. 2. They cost you a lot of money and goodwill. 3. They don’t think about your interests,” Selkis explained on Twitter.
As the Trumps continue to experiment with the coin market, there are concerns about the rapid changes in value and the controversial nature of their launches.
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