The post Why Is TRUMP Memecoin Crashing? appeared first on Coinpedia Fintech News
After Melania Trump launched her own memecoin on Sunday, positioned as a rival to $TRUMP, Donald Trump’s memecoin saw a 40% drop before rebounding.
“The official Melania meme is live,” the incoming first lady of the U.S. posted to X, with a link to a website selling the cryptocurrency. “You can buy $ Melania now.” Within hours, the price of the digital asset jumped to more than $12—with an accompanying market cap of more than $12 billion, according to cryptocurrency tracker DEX Screener.
TRUMP Rebounds
Following the crash, $TRUMP surged back above $64. Robinhood has officially listed $TRUMP on its exchange. Additionally, Donald Trump’s crypto platform, World Liberty Financial, acquired three new domain names—trumpcoin.eth, erictrump.eth, and barrontrump.eth—suggesting a possible new memecoin launch.
The official Trump memecoin surged to a $14 billion market cap after its Friday launch, entering the crypto top 20. Experts questioned its legality. However, the price dropped as traders switched to Melania’s coin, pushing it above $5 and giving it a $5 billion market cap.
Crypto: A Family Business?
Various market observers jumped in to share their opinions. “Looks like crypto is becoming a family business,” X influencer Mario Nawfal posted. Besides, Democratic leader Ro Khanna expressed concerns about market volatility noting that elected officials should be barred by law from having meme coins.
“Elected officials must be barred from having meme coins by law. Meme coins are highly speculative and like gambling must be regulated by the SEC. They are neither neutral money (not controlled by insiders) nor platforms for innovation,” Ro Khanna noted.
Besides, analysts at The Kobeissi Letter described the situation as “beyond insane,” noting that just 48 hours after the launch of $TRUMP, it lost $7.5 billion in market cap in 10 minutes. The memecoin is currently trading at $52.02, down over 10% in the past 24 hours.