The rise and fall of memecoins tied to public figures have once again demonstrated the speculative nature of the cryptocurrency market.
Donald Trump’s TRUMP token and Melania Trump’s MELANIA token have seen staggering declines, shedding billions in market value in just weeks.
Data from CoinMarketCap shows that TRUMP has dropped by 75% from its peak, while MELANIA has plunged nearly 90% since its launch.
The hype around these tokens initially drove a surge in prices, but their rapid declines highlight the short-lived appeal of politically linked memecoins.
Despite their connection to the First Family, investors are learning that even the highest-profile endorsements cannot guarantee sustained value in the crypto space.
Early gains wiped out for Trump-linked tokens
The TRUMP token was launched on January 17 on the Solana blockchain, quickly gaining traction and reaching an all-time high of over $70.
Just two days later, Melania Trump introduced the MELANIA token, further fueling interest in meme coins tied to the Trumps.
At its peak, MELANIA had a market capitalisation of $2.1 billion, with its price soaring to $13.73.
But as the initial excitement faded, so did the value of both tokens. MELANIA now trades at around $1.50, reflecting a staggering 90% drop, while TRUMP’s losses have erased most of its gains.
Source: CoinMarketCap
This pattern is not unusual for memecoins, which often rely on virality rather than intrinsic value.
The speculative nature of these assets means they tend to experience rapid price swings, driven by social media hype rather than long-term fundamentals.
Trump’s influence on crypto fails to prevent downturn
Despite the attention that Trump’s involvement brought to memecoins, his political presence did not prevent the sharp decline in value.
Some crypto investors viewed his foray into digital assets as a sign of growing political support for the industry, while others saw it as an unnecessary distraction.
Unlike most memecoins, TRUMP was launched under CIC Digital LLC, a Trump-linked entity, and Fight Fight Fight LLC issued the MELANIA token.
This official connection to the president and first lady briefly helped drive demand, but even Trump’s ability to generate controversy and viral moments was not enough to sustain the rally.
Since its debut, TRUMP has likely generated at least $11.5 million in fees for entities associated with Trump, according to estimates from risk modelling firm Gauntlet.
Most investors who bought the token early saw little to no profit, with Bloomberg’s analysis indicating that the majority of wallets made no more than $13 in gains.
The price collapse of these tokens serves as a cautionary tale about the risks of investing in politically affiliated cryptocurrencies.
While high-profile figures can temporarily boost demand, the long-term viability of memecoins remains uncertain, particularly when their use case is unclear.
As the market moves on from the Trump-linked token frenzy, traders are left wondering whether politically charged memecoins will ever hold lasting value—or if they will remain fleeting trends driven by speculation.
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