Trump Family Tokens Crash: $MELANIA and $TRUMP Plunge

Twitter icon  •  Published 3 hours ago on January 21, 2025  •  Nikolas Sargeant

Presidential inauguration day proves volatile for Trump-linked cryptocurrencies as both family tokens experience significant market value declines.

Trump Family Tokens Crash: $MELANIA and $TRUMP Plunge

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.

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Author

Nikolas Sargeant

Nik is a content and public relations specialist with an ever-growing interest in Crypto. He has been published on several leading Crypto and blockchain based news sites. He is currently based in Spain, but hails from the Pacific Northwest in the US.