Cryptocurrency markets are frequently erratic, but Trump (along with his teams) has just escalated the turmoil to unprecedented levels.
Just prior to his swearing-in as President of the United States, set for Monday, Jan. 20, Trump introduced the $TRUMP memecoin on the Solana blockchain. The revelation came straight from his official X account, making it as legitimate as possible.
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This is not Trump’s initial venture into the cryptocurrency space. He has previously supported cryptocoins and various crypto projects, but this new endeavor is being promoted as the “only Official Trump Meme.” The distinguishing factor is the timing—debuting the memecoin right before his inauguration. Although the coin itself has no real utility apart from its title, the action may be interpreted as an implicit endorsement of the Solana platform, memecoins in general, and the opportunistic strategy of utilizing attention for potential pump-and-dump schemes.
For a clearer perspective on how these situations typically unfold, consider the recent controversy regarding the HAWK coin. As for $TRUMP, its path has been nothing short of extraordinary. The coin soared from nearly zero to an impressive $83 per coin, resulting in a fully diluted valuation (FDV) of $83 billion based on its one billion coin supply.
The rush to obtain $TRUMP led to a significant liquidity exodus within the broader cryptocurrency market. Investors offloaded other coins to join the $TRUMP surge, which led to considerable value declines for most cryptocurrencies. At the time of writing, $TRUMP has stabilized at around $58, reducing its FDV to $58 billion. Concurrently, Bitcoin reached an all-time high of $109,000 early Monday, although many altcoins remain significantly down.
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Evidently, the chaos was not sufficient for Trump and his crypto supporters. During Trump’s victory rally on Sunday, they launched yet another memecoin: $MELANIA. The announcement, communicated through Melania Trump’s official X account, incited another buying frenzy. This latest coin further sapped liquidity from the market, including from $TRUMP itself. Despite the volatility, $MELANIA is currently holding steady at $11.26 per coin, with an FDV of $11.5 billion.
**SEE ALSO:**
[Bitcoin finally hits a massive price milestone](https://mashable.com/article/bitcoin-hits-100k)
Cryptocurrencies are notorious for their instability, with coins often soaring from insignificance to valuations in the millions—or even billions—within mere days. Nevertheless, the rapid ascent of $TRUMP has been remarkable, even by crypto standards. With the inauguration imminent, the crypto market might be poised for even greater volatility. Hold on tight.