In a surprising turn of events, the value of cryptocurrency tokens named after former U.S. President Donald Trump and his wife, Melania Trump, experienced significant declines despite the recent inauguration ceremony that marked Trump’s return to power.
The TRUMP token plummeted by over 40%, while the MELANIA token suffered an even more dramatic drop of over 60% in the past 24 hours.
Trump and Melania Memecoins Plummet Despite Inauguration
According to a report by Decrypt, the crypto market witnessed significant bearish fluctuations in the previous day. Analysts’ attention was particularly drawn to the Trump and Melania tokens, which, after an initial surge at the beginning of the week, faced substantial selling pressure.
Steep Decline in Melania Token
The MELANIA token, in particular, saw a staggering decline of over 60% following the inauguration of the U.S. President. The market capitalization of MELANIA has now dropped to approximately $625.5 million. Meanwhile, the TRUMP token also experienced a sharp downturn, falling by 43% from its peak of $73.43 to $35.
Initial Performance and Tokenomics
It is worth noting that the MELANIA token had initially surged by 12,000% at the time of its initial offering, reaching a peak of $13.05. However, it has now plummeted to just $4.18. These tokens have faced serious questions and criticisms from the outset. For instance, 80% of the TRUMP token supply is held by its developers, which heavily centralizes its ecosystem. On the other hand, the MELANIA token has distributed about 35% of its supply to users, but the developers’ token unlock period is extremely short, ranging from 1 month to 1 year. In contrast, the TRUMP token’s unlock period is 3 years.
Market Speculation and Lack of Fundamental Backing
It appears that most traders have adopted the strategy of “buy the rumor, sell the news,” capitalizing on the hype surrounding the inauguration. Additionally, it is important to recognize that political meme coins lack fundamental backing and are primarily dependent on the names and personas of their developers.
The dramatic fluctuations in the value of these tokens highlight the volatility and speculative nature of the crypto market, particularly for assets that are tied to political figures. As investors grapple with the implications of these price movements, the broader question of the long-term viability and value of such meme coins remains unanswered.
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