The crypto market saw significant volatility on Monday after the Trump family moved into meme coins, which had slipped in value the day before.
First Lady Melania Trump's newly launched meme coin, Melania, has fallen more than 60 percent from its initial high following the inauguration of President Donald Trump.
Melania It now sits at a market cap of $625.5 million CoinGecko Data. With this Donald Trump meme coin, Official trump ( TRUMP ), also fell 43% to $45 from a high of $73.43 earlier in the week.
The Solana-based coin initially surged 12,000%, reaching as high as $13.05 before falling to just $4.18, according to CoinGecko data.
Paid as a collection and entertainment token, the project Questions to be asked “It's not a financial instrument or an investment,” he said. However, the decline in prices appeared to be a disclaimer, but raised questions about its speculative nature.
Designed for a gradual rollout, MemeCoin's distribution model provides 35% of tokens to groups over 13 months with a 20% treasury and community initiative allocation.
In contrast, TRUMP saw explosive growth at first; breaking A day before the launch with a maximum of 15 cryptos at the market price.
However, the start of Melania and the fluid shift caused a significant drop in the Trump meme coin.
Infrastructure issues on Solana It got worse Chaos, crammed with trading jams like Phantom Pocket and Jupiter Exchange.
“The launch of the TRUMP token represents an unprecedented moment in the crypto markets, as it is the first time a president has signed a memecoin launch,” said Dan Hughes, Founder and CTO. RadixHe told him Decrypt.
Hughes stated that the launch of the Melania token combined with the group's wallet reports that they would convert TRUMP's holdings into mainstream cryptos. Solana (SOL), Ethereum (ETH), and able Bitcoin (BTC)—Coinciding with a rally above $108,000, it suggests a coordinated strategy that could dampen the market's volatility.
“This may be indicative of a trend in crypto markets where celebrity-based token launches, particularly from political figures, are overshadowing the underlying value creation of influence and exchange,” Hughes said.
In the midst of meme coin chaos, World Freedom Finance (WLF), the DeFi platform associated with President Trump and his family, made significant crypto moves during his inauguration.
The platform added 439 Wrapped Bitcoin (wBTC), valued at $47 million, to its balance sheet, increasing its holdings to 456.77 wBTC.
The purchase was part of a series of transactions of nearly $100 million in BTC and ETH over two days.
to speak Decrypt, Sudhakar Lakshmanaraja, founder Digital South Trust“Trump and Melania's coin debacle is a clear example of why substance should be prioritized over incentive in the crypto world.”
“This situation is a reminder that hype and speculation can only drive a token so far. Without a strong use case or utility, meme coins are vulnerable to volatility and market sentiment,” Lakshmanaraja added.
The meme coin turmoil occurred against the backdrop of President Trump's second term, with expectations for crypto-friendly policies, at least for now. He did not meet.
Trump's inaugural speech and first executive orders excluded digital assets, disappointing supporters who had hoped for regulatory transparency, Bitcoin reserves or the repeal of the SEC's controversial “SAB 121” rule.
Edited by Sebastian Sinclair
Daily Debrief Newspaper
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