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President-elect Donald Trump introduced a digital token over the weekend that initially attracted billions in trading volume. However, it experienced a decline on Monday prior to his inauguration, impacting the cryptocurrency market.
The Official Trump ($TRUMP) token was launched on Solana on Jan. 18 and quickly surged to over $15 billion in market capitalization by Saturday. Nevertheless, by Monday, it fell to $9 billion, erasing $6 billion in value.
Trump is set to return to the White House on Jan. 20. Investors will focus on his inauguration speech to assess his immediate policy intentions.
Trump Meme Coin’s $9B Decline Raises Investor Concerns of Market Manipulation
Meme coins associated with prominent figures or events are known for their volatility. The decrease to $9 billion may be attributed to investors taking profits, uncertainty regarding the token’s long-term value, and the speculative nature of meme coins.
The $TRUMP website indicates that CIC Digital, affiliated with the Trump Organization, and Combat Combat Combat, its co-owned entity, control 80% of the meme coin. This concentrated supply may raise concerns about market manipulation or a large sell-off following lock-up periods, potentially leading to further price declines.
On Monday, 10X Research reported that $TRUMP became Binance’s most actively traded coin. Its 24-hour trading volume reached $6.3 billion, exceeding $SOL’s $5.4 billion and even $BTC’s $5.1 billion.
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“While many regard $TRUMP as merely another meme coin, it is more accurately classified as a ‘fan token.’ Holders utilize it to celebrate market gains following his November election and to express support for potential crypto-friendly policies under Trump’s new administration,” the firm stated.
As a fan token, it may provide utility by offering airdropped benefits such as exclusive event access, information, and other gated advantages directly to the holders’ wallets, it added.
My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING! Join my very special Trump Team. GET YOUR $TRUMP NOW. Visit https://t.co/GX3ZxT5xyq — Have Fun! pic.twitter.com/flIKYyfBrC
— Donald J. Trump (@realDonaldTrump) January 18, 2025
Melania’s Meme Coin Launch Fuels the Trump Crypto Movement
Trump’s official social media channels appear to validate the token’s authenticity, first on Truth Social and later on his official X/Twitter account. However, if the “Official Trump” token is a scam, it could become one of the largest and most intricate frauds in cryptocurrency history.
Trump’s meme coin launch occurs at a pivotal moment, as he is expected to sign an executive order shortly after taking office to prioritize cryptocurrency at the national level. Reports suggest he intends to address crypto de-banking and amend a controversial banking accounting policy through executive orders.
Meanwhile, over the weekend, Melania Trump unveiled her own meme coin, MELANIA, following her husband’s crypto initiative. The coin’s website describes Melania Memes as fungible crypto assets tracked on the Solana blockchain.
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