As Bitcoin suffered a brief setback on Monday morning trading, the newly launched Melania Trump Meme coin, $MELANIA Coin, made headlines after surging “beyond insane” and leaped over 12,000%. The unprecedented growth occurred as President-elect Donald Trump’s Trump coin experienced a 30% decline.
On the eve of her husband’s inauguration, Melania Trump, the incoming US First Lady, announced her own Memecoin, $MELANIA Coin, late on Sunday, January 19, 2025. She wrote in her official X handle, “The Official Melania Meme is live! You can buy $MELANIA now.” The announcement caused a temporary setback for the Trump coin, which tanked at least 30%.
Launch Elicited Immediate Market Attention
The announcement of the $Melania coin launch, which the website describes as a fungible crypto coin created and tracked on the Solana blockchain, happened just before Trump’s victory rally in Washington, DC. The newly created Memecoin gained immediate attention as the price rose to over $5, and its market capitalization exceeded $5 billion. The incoming First Lady invited interested buyers to buy her coin herself.
Interestingly, during its launch, the Trump Coin elicited a lot of excitement in the market, reached a staggering $14 billion in market value, and rode the wave to become among the top 20 digital assets by market capitalization. Nonetheless, the excitement associated with the Memecoin didn’t last as long as should have been expected.
$Melania Coin Stole Thunder from Trump Coin
In a similar move, the $Melania Coin had an immediate high impact after its launch and, surprisingly, stole the thunder from the Trump coin. Following the announcement by the incoming First Lady, a few minted, the Trump Coin lost up to 40% of its value, with many investors buying it, selling off their holdings, and buying into the newly launched $Melania coin. According to an analyst’s calculations, the price of the Memecoin associated with the incoming President must have lost up to $7.5 billion in just 10 minutes following the coin launch. Writing on the X platform, the Kobeissi Letter analyst stated:
“This is beyond insane. Less than 48 hours ago, Donald Trump launched $ Trump, which erased $7.5 billion in market cap in 10 minutes. In the minutes around Melania Trump’s token launch, we saw massive sell orders in $Trump.”
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The Entire Crypto Market Struggled With Volatility
The $Melania coin website states that it has allocated 35% to the development team and has a 13-month release schedule, slightly different from many other tokens that have often faced criticism due to their erratic release patterns. The team has allocated 20% each to community initiatives and treasury reserves, showcasing the desire to foster collective participation and stable growth. There is also a precautionary liquidity pool of 10% and a 15% public distribution share, highlighting the intention to create a collectible asset instead of a speculative financial instrument.
The situation surrounding the $Melania coin happens as the broader crypto market struggles with widespread volatility. As Bitcoin drew backward from the $100,000 benchmark, other market players, such as DOGE, also dropped by at least 11%, according to data from CoinGecko. The ongoing fluctuations highlight the fragility of the crypto market and the interconnectivity of its different segments.
Conclusion
The launch of the $Melania Coin comes at a critical moment in the history of the cryptocurrency industry. As the market stabilizes after significant fluctuations, investors should stay well informed and vigilant to recognize the importance of understanding the mechanics of the crypto market within the broader economic environment.
Frequently Asked Questions (FAQs)
How do Memecoins function?
Memecoins can be bought and sold on crypto exchanges. They are run on blockchain technology and gain their value through social media trends, community support, and viral marketing.
Are there benefits of investing in Memecoins?
Some benefits include community engagement, ease of access, high reward potential, and fun investment with the probability of a rapid increase in value caused by social media trends.
What should I consider before buying Memecoins?
Like all other investments, Memecoins are subject to market volatility, and there is the potential for significant financial losses.
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.
