The on-chain activity linked to the TRUMP ($TRUMP) and MELANIA ($MELANIA) tokens has piqued the interest of the crypto community. Named after two of today’s most visible public figures, these tokens have revealed some extremely distinct holder behaviors, with real and potential PNL (profit and loss) that have marked them as something of an asset. And while the world was watching last week, both the TRUMP and MELANIA tokens were making primetime headlines, with some developments that are horning in on the usually low-profile space of crypto asset custody. Wallet Creation Patterns: A Shared Origin A truly remarkable statistic is the considerable crossover between the creation of wallets and the acquisition of tokens. Almost half of the holders of $TRUMP and $MELANIA created their wallets on the same day they bought these tokens. This strange behavior indicates that a lot of really interested people were making their first purchases of crypto. We are clearly in the midst of a meme token moment, with these two tokens virally attracting a lot of new entrants to the ecosystem. Profitability Metrics: TRUMP Outpaces MELANIA In terms of profitability, $TRUMP traders appear to have done better than their $MELANIA counterparts. Most $TRUMP traders are at a net loss, but the number of traders making profits between $10,000 and $10 million exceeds the number of traders reporting losses of that same magnitude. This signals that while many $TRUMP traders have not succeeded in making profitable trades, a handful of them has managed to steer the token in a direction that allowed for some “cash in hand.” By contrast, reported $MELANIA traders had a significantly greater percentage of negative PNL outcomes. This difference highlights trading dynamics and market sentiment discrepancies between the two tokens. $MELANIA trading activities seem to have been more concentrated among a few participants, which may explain the heightened loss likelihood. Trading Behavior: A Tale of Two Sell-Offs The patterns of selling for $TRUMP and $MELANIA reveal further differences in trader behavior. For $TRUMP, the largest sell-offs seem to have happened on January 19, when the price was over $60. On this day alone, traders who sold $TRUMP (and only $TRUMP) sold tokens worth approximately $78 million. And this was on a day when the token was surging. So what were these traders up to? Well, if you ask the tokenomics team, they’ll say it was a wave of profit-taking among sellers who seemingly sought to capitalize on the surge. In contrast, $MELANIA’s sell-off was concentrated in time. The majority of $MELANIA tokens were sold within the first four hours after the token’s launch, with a total sell volume of around $98 million. This rapid liquidation suggests that many early buyers saw $MELANIA as an opportunity with a very short window for making gains, leading to quick profit-taking and a trading activity level that fell off a cliff after those first four hours. Token Distribution: A Concentration of Small Holders Another important factor is the distribution of token ownership among $TRUMP and $MELANIA holders. More than 80% of holders for both tokens own less than $1,000 worth of assets on Solana. This distribution highlights the pixels of these tokens, and it shows in really bold letters that the buy button is being pushed by main street—by retail investors, that is. And that’s not a bad thing; in fact, it’s seemingly a good thing for these Solana-based meme tokens. And it is certainly a much, much better thing than if these tokens were being owned and controlled by a handful of big players. TRUMP & MELANIA Onchain Metrics 1/6 Nearly half of $TRUMP and $MELANIA holders created their wallets on the same day they purchased the tokens. pic.twitter.com/7wtEOIM1W4 — CryptoRank.io (@CryptoRank_io) January 24, 2025 What These Metrics Tell Us On-chain data for $TRUMP and $MELANIA reveals the unique dynamics of meme-token markets. Both tokens drew much interest from newcomers to the space, as evidenced by a ton of new wallets created to trade the assets. But what happened after the wallets were created didn’t look too similar for $TRUMP and $MELANIA, with their trading patterns and profitability outcomes diverging significantly in a very short amount of time. The data for $TRUMP indicates a kind of activity that is a mix of speculation and strategic profit-taking. Some traders have been trying to catch $TRUMP’s volatility and have done so quite successfully to secure them some very nice gains. $MELANIA, however, is showing us an entirely different picture. The concentrated sell-off occurring in $MELANIA alongside a pretty pronounced negative PNL outcome trend has us believing that $MELANIA isn’t giving its traders the kinds of favorable long-term holding conditions that we occasionally see in $TRUMP. Looking Ahead The crypto market is still developing, and the tokens that are created in its meme image, like $TRUMP and $MELANIA, are sure to remain a hot-button issue. While the viral nature of these assets can easily generate huge levels of interest and trading volumes, their speculative nature makes them risky investments. Meme tokens are held mostly by small-scale holders, and because these tokens are so volatile, caution is warranted. If you’re contemplating trading in or investing in meme tokens, attempting to understand the metrics and behind-the-scene workings of the market can yield useful insights into the nature of the potential risks and rewards that are part and parcel of this very speculative asset class. In the end, both $TRUMP and $MELANIA, through their rise and downfall, remind us of the speculative charm of meme tokens and their almost child-like appeal to the crypto community. They may not last or hold any real value, but if they can get people talking, thinking, and imagining, then they’ve done what all good tokens are supposed to do. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news !
