Two new meme coins tied to the Trump family—Official Trump (TRUMP) and Melania (MELANIA)—have emerged on the cryptocurrency scene, creating quite the stir among investors and analysts alike. Just days before Donald Trump’s second term as U.S. president began on January 20, 2025, TRUMP coin launched on January 17, making headlines with its eye-catching ascent.
Within hours of its debut, TRUMP coin surged to $75.35, leaving investors dazzled. But like many cryptocurrencies, this spike was followed by rapid declines, dropping nearly 74% to around $19.38 as of February 1, 2025. The coin, backed heavily by Trump Organization affiliates who hold about 80% of the tokens, boasts a substantial market capitalization, which stands at approximately $2 billion even after the steep decline.
Anthony Scaramucci, founder of SkyBridge Capital and once allied with Trump, has voiced strong criticism, alleging the coin’s launch is indicative of a pump-and-dump scheme. “President Trump posted on Truth Social last night in an attempt to ‘pump’ his $TRUMP memecoin... The jig is up,” Scaramucci stated on social media, raising alarms about the coin's integrity.
Scaramucci, speaking from the World Economic Forum held recently in Davos, Switzerland, didn’t hold back when he described these coins. “It’s a gambling token. It's a meme coin,” he told Yahoo Finance, emphasizing the volatile nature of such investments and warning retail investors might end up holding the bag.
The launch of Melania Trump’s coin followed any announcements made for the TRUMP coin, debuting shortly thereafter. MELANIA coin reached valuations of nearly $13, but like its counterpart, it has also seen its values plummet. At its peak, MELANIA reached $732 million market cap, but analysts point out the asset too faces significant volatility.
Experts are divided on the significance of these developments. According to Gautam Chhugani, an analyst with Bernstein, the introduction of meme coins tied to prominent political figures signals a massive paradigm shift within the cryptocurrency market. “The launch of a meme coin by the biggest political figure… signifies a new regulatory era,” he noted, hinting at potential ramifications for how cryptocurrencies are viewed and regulated moving forward.
Both TRUMP and MELANIA coins seem to reflect broader trends within the cryptocurrency sphere, where community support and market sentiment often drive value rather than genuine utility. Meme coins, by nature, are susceptible to wild fluctuations based primarily on public perception.
Kar Yong Ang, a financial market analyst at Octa Broker, warned investors to be cautious, calling out the risks involved. “Although TRUMP may be considered as a ‘rug pull’... it may have potential longevity,” he stated. With much of the coin's supply held tightly by Trump-affiliated entities, concerns also arise about market manipulation.
Despite the excitement surrounding these coins initially, reality quickly set in for investors. The general advice from various experts is clear: avoid these types of investments, which often fall outside the boundaries of what might be deemed investment-grade assets.
Investors, especially retail ones, will need to tread lightly. Scaramucci's apprehensions highlight the unpredictability of meme coins, raising questions about not just financial returns but ethical ones as well. With cryptocurrencies becoming part of commercial strategies for political figures, these coins could exhibit more than just speculative trends; they may also influence future regulations surrounding cryptocurrencies.
So, where does this leave the future of TRUMP and MELANIA coins? With peaks behind them and turbulent market dynamics at play, the prospects seem uncertain. For investors interested in crypto, the underlying lesson is clear: investing based on hype alone is fraught with risk. During this tumultuous time, many experts would recommend steering clear of such speculative ventures altogether—investing instead where there is at least some established utility.
While meme coins may attract attention and entice quick speculation, the underlying volatility should act as a red flag. The best course may be to look toward assets with inherent value, rather than those tied to personalities, especially as the dust settles on this new political and financial crossover.
Indeed, both TRUMP and MELANIA coins may mark the beginning of a shifting paradigm within the cryptocurrency space, one where political endorsements and name recognition could define asset performance. But as history has shown, investing based on the attention garnered by celebrities or political figures often leads to financial instability.
For those who foresee potential growth avenues within cryptocurrency but are skeptical of meme coins, focusing on established assets and networks may yield more sustainable opportunities.