The introduction of memecoins supported by Donald Trump and his wife, Melania Trump, over the weekend took the cryptocurrency industry by surprise. The total value of these coins, TRUMP and MELANIA, swiftly surpassed $15 billion. However, accusations of avarice and unethical activity against the Trump family have been triggered by the swift rise and fall of these coins.
The introduction of Donald Trump’s self-branded TRUMP token sparked the uproar. The token first soared, hitting a market valuation of $15 billion, after being announced on social media with promises of celebrating “winning.” Melania Trump’s own memecoin, MELANIA, was introduced shortly after, disrupting the market and escalating rumors that the launches were a planned money grab.
Within hours of MELANIA’s release, TRUMP’s value fell 38%, while MELANIA’s worth peaked at $13 billion before leveling down at $7.3 billion. Spectators were eager to point fingers. The move was referred to by financial analysts as a classic “pump-and-dump” approach, in which insiders profit at the expense of regular investors.
One analyst noted that Trump supporters who purchased the tokens faced financial dangers, stating, “Launching back-to-back coins looks like a blatant cash grab.” With Trump-affiliated firms controlling 80% of its supply, the TRUMP arrangement is especially controversial and raises questions about possible price manipulation.
Given that Bitcoin’s price fell sharply over the weekend, the memecoin craze is occurring at the same time as a wider decline in the cryptocurrency market. The Trump family’s foray into speculative investments, according to critics, damages their reputation.
Several Donald Trump fans, particularly cryptocurrency enthusiasts, have expressed disappointment. The launches, according to many, damage the former president’s reputation and betray the confidence of his supporters. One well-known Trump fan even advocated firing the family’s cryptocurrency advisors for their bad choices.
Another factor fueling the debate is the potential use of meme coins as a persuasion tool. Wealthy people or organizations could gain favor without making actual financial transactions by increasing the value of cryptocurrencies associated with Trump. These worries suggest more significant ramifications for cryptocurrency investment ethics.
Notwithstanding the criticism, the coins have unquestionably attracted a lot of trading interest, making this one of the most spectacular public figures’ entries into the cryptocurrency market. There are still unanswered questions regarding how politics, influence, and speculative investments interact.
