The inauguration of Donald Trump marked a significant downturn for the family's cryptocurrency ventures, with both $TRUMP and $MELANIA tokens experiencing substantial market losses. According to Coingecko data, $MELANIA's market capitalization plunged from $2 billion to $790 million, while the $TRUMP token saw its value halved, settling at $6.86 billion. The dramatic decline came despite initial optimism surrounding Melania Trump's entry into the cryptocurrency market with her token launch.
Trading data from CoinMarketCap revealed $TRUMP trading at $34, representing a 40% decline over 24 hours, while $MELANIA suffered a steeper 60% drop, falling to just over $4. These losses occurred against the backdrop of a resilient broader cryptocurrency market, which saw a modest 0.64% increase in global market capitalization to $3.53 trillion, with Bitcoin maintaining strength above $100,000.
Regulatory Scrutiny and Market Concerns
The significant price movements have intensified discussions about the regulatory implications of a sitting president's involvement in cryptocurrency ventures. Industry experts, including Hong Kong-based analyst Justin D'Anethan, have raised concerns about the ethical considerations and potential regulatory challenges facing these presidential-linked tokens. The Trump Organization's announcement of transferring day-to-day management to Trump's children has done little to quell these concerns.
Future Policy Implications and Market Outlook
Despite campaign promises positioning Trump as a "crypto president" and expectations of favorable cryptocurrency policies, the inauguration day passed without significant crypto-related announcements. The administration is expected to prioritize executive orders addressing crypto de-banking and revising controversial banking policies, including the potential repeal of Biden-era regulations requiring banks to list digital assets as liabilities.
The Trump family's deeper involvement in cryptocurrency extends beyond these tokens, with their September 2024 launch of World Liberty Finance, a decentralized finance platform. According to official documentation, 80% of $TRUMP tokens are controlled by Trump-affiliated entities CIC Digital and Fight, Fight, Fight, raising questions about centralization and market manipulation risks.
The market volatility surrounding these tokens serves as a reminder of the complex intersection between political power and digital assets, with industry observers closely monitoring potential regulatory developments and their impact on the broader cryptocurrency ecosystem.