- Melania Trump’s MEMECOIN skyrocketed to a $5 billion valuation in just an hour, driving unprecedented excitement in the crypto world.
- The TRUMP coin suffered a 38% drop in value, highlighting the influence of public figures on memecoin volatility.
The crypto market witnessed a dramatic shakeup with the launch of MELANIA, a memecoin introduced by Melania Trump, the former First Lady of the United States. Announced on January 18 via her X account, where she has over 3.2 million followers, this token surged to a staggering $5 billion market capitalization in just one hour.
This remarkable milestone sent shockwaves through the market, directly impacting the valuation of TRUMP, a memecoin associated with former President Donald Trump, which plunged by 38%.
The MELANIA coin was deployed on the Solana blockchain and was presented as a symbol of “support and engagement,” according to its official website. While MELANIA’s creators clarified that it is not an investment product but a symbolic token, its sudden rise demonstrates the powerful influence of public figures in the crypto sphere.
The Structure Behind MELANIA
The token’s distribution strategy is tightly organized, with allocations set as follows:
- 35% for the project team
- 20% split between the treasury and community
- 15% offered to the public
- 10% reserved for liquidity
However, blockchain analytics firm Bubblemaps revealed that 90% of MELANIA tokens are concentrated in a single wallet. This discovery raises concerns over the centralization and governance of the project. Critics argue that such a level of control contradicts the decentralization ethos of blockchain technology and could erode trust in the project’s legitimacy.
TRUMP Coin’s Plunge: A Case of Market Dynamics
While MELANIA captured the attention of crypto enthusiasts, the market’s reaction was far from harmonious. The TRUMP memecoin saw its market cap fall from $74.6 billion to $45.9 billion within 40 minutes—a sharp 38% decline.
This dramatic shift underscores the high volatility of memecoins, where prices often hinge on social sentiment and the influence of high-profile backers.
The MELANIA launch has sparked speculation about an indirect rivalry between the two tokens. Analysts interpret this event as a “battle of influence,” with public personas playing a more decisive role than the underlying technology or utility of these tokens.
Conor Grogan, a director at Coinbase, offered nuanced commentary on the situation. He expressed skepticism that MELANIA is a rug pull—a fraudulent scheme—but suggested it might have been launched by a less experienced team compared to the TRUMP project.
Governance issues and the centralization of tokens remain critical obstacles for both projects, potentially undermining their long-term viability.
The volatility and centralization of MELANIA further highlight a broader challenge within the memecoin ecosystem. Observers question whether tokens like MELANIA represent genuine tools for digital engagement or if they are fleeting phenomena riding on celebrity influence.
As the market debates the regulatory and ethical implications of such projects, the fate of MELANIA will hinge on its ability to move beyond its initial hype and establish itself as a credible player in the cryptocurrency space.