Donald and Melania Trump's tokens experience a drastic fall

Donald and Melania Trump's tokens experience a drastic fall

In the last 24 hours, the TRUMP and MELANIA tokens have found themselves in turbulent waters as their value has dropped dramatically, despite huge investor interest. Following the recent launch of the official memecoins of US President Donald Trump and his wife Melania, investors are facing significant losses.

The initial shock comes with the news that the TRUMP and MELANIA tokens have lost up to 60% of their value. This drop followed intense profit taking, with trading volumes exceeding a whopping $19 billion for TRUMP and $4.5 billion for MELANIA. By comparison, these figures outpace trading activity for popular tokens such as Tron (TRX) and Cardano (ADA), which saw less than $4 billion in the same period.

Although the trading frenzy initially promised high profits, the futures market that tracks these tokens also suffered significant losses. Traders who had bet on price increases were liquidated with total losses of over $70 million.

The crypto markets had hoped that President Trump would touch on the topic of cryptocurrencies in his inauguration speech and perhaps unveil plans to create a strategic bitcoin reserve. However, the absence of any announcements in this area led to a drop in the price of Bitcoin (BTC), which fell from $109,000 to $100,000 in Asian trading hours.

Business activity has slowed significantly since then. According to data from the Moonshot platform, where TRUMP was first listed for retail investors, trading volumes have dropped from an average of more than $6 million to just $1 million in the past 24 hours.

Despite this setback, however, some analysts are unwilling to give up their optimism about the long-term potential of Trump-related memecoins. Singapore-based firm QCP Capital has even suggested that the launch of the TRUMP token on the Solana (SOL) blockchain could represent an important step within the entire crypto ecosystem.

How will the situation unfold next? Can we expect the cryptocurrency market to pick up soon, or will this crash be just the beginning of a longer period of instability? Time will tell.

*This is not an investment recommendation.

The Coingarage team