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crypto.news 2025-01-20 04:26:38

TRUMP token crashes by 55% after Melania Trump’s meme coin launch

TRUMP token crashes by 55% after Melania Trump’s meme coin launch

Melania Trump’s newly launched meme coin, Melania Meme (MELANIA), has caused a sharp decline in demand for Donald Trump’s Official Trump (TRUMP) coin. As a result, TRUMP’s market cap has dropped by 55% in just 10 minutes, entering a bear market phase. On January 20, Melania Trump, the former First Lady of the U.S., announced the launch of her meme coin, MELANIA, on X. The Official Melania Meme is live! You can buy $MELANIA now. https://t.co/8FXvlMBhVf FUAfBo2jgks6gB4Z4LfZkqSZgzNucisEHqnNebaRxM1P pic.twitter.com/t2vYiahRn6 — MELANIA TRUMP (@MELANIATRUMP) January 19, 2025 Following her post, Donald Trump shared her announcement during his Victory Rally. This unexpected move led to a sharp drop in demand for TRUMP , a meme coin Donald Trump had launched just 48 hours earlier. The TRUMP token, which had surpassed a $14 billion market cap, experienced a sharp 55% decline within just 10 minutes of Melania’s announcement. However, as of this writing, TRUMP’s market cap has stabilized at $9.42 billion, with the token trading at $47.19. Moments later, we posted on X that the coin had launched. Prior to Donald Trump reposting her announcement, $TRUMP was little changed. After the repost and our breaking news post, $TRUMP fell -55% in minutes. Consider turning on @KobeissiLetter notifications. pic.twitter.com/y8AiDY0XIO — The Kobeissi Letter (@KobeissiLetter) January 19, 2025 Before the launch of MELANIA, TRUMP was performing well, with buyer orders outpacing seller orders in the market. The token was also listed on HashKey Global on January 19. According to Kobeissi Letter, large sell orders, ranging from $1 million to $5 million, accumulated in the spot market. The selling pressure was so strong that Solana, $SOL , the cryptocurrency itself, fell nearly 20% in minutes. The trade went from a rush to the entrance to a rush to the exit. Across all memecoins, well over $10 billion in market cap was erased in the minutes after launch. pic.twitter.com/DL4YQBMAMf — The Kobeissi Letter (@KobeissiLetter) January 19, 2025 You might also like: TRUMP meme coin pushes Solana DEX volume, SOL price to all-time high However, after MELANIA’s launch, the selling pressure on TRUMP outweighed the buying pressure, with $351.7 million in sell orders compared to $244.5 million in buys within the first hour post-launch. This imbalance contributed to the decline in TRUMP’s price. Kobeissi Letter also noted that the selling pressure on TRUMP spilled over to Solana ( SOL ), causing its value to drop by nearly 20% in minutes. Despite the volatility, TRUMP still boasts around 824,000 holders, and the token is currently valued at approximately $39 billion. Additionally, with a vesting schedule spanning three years, there is potential for the token to stabilize in the future. Read more: Trump meme coin surge, Solana hits new ATH, Ethereum leadership changes | Weekly Recap

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