The cryptocurrency market has experienced a turbulent 24 hours, as memcoins tied to U.S. President Donald Trump and First Lady Melania Trump saw sharp declines following Monday’s inauguration. Officially endorsed by the Trump family, the Official Trump (TRUMP) and Melania Meme (MELANIA) tokens, which debuted just days ago, have plummeted amid heavy profit-taking and broader market weakness.
The TRUMP token plunged 26% to about $39, while the MELANIA token tumbled 54% to $4.56 over the past day, according to data from Coingecko. These tokens initially fueled excitement among Trump supporters and crypto enthusiasts immediately after the launch but have faced intense volatility.
The declines come after Trump's inauguration failed to deliver any immediate announcements regarding his campaign promise to establish a Strategic Bitcoin Reserve.
Market sentiment soured as investors hoped for clearer signals of pro-crypto policies. While President Trump signed several executive orders on his first day, none addressed digital assets, leaving some bulls disappointed. Trump’s vocal support for bitcoin during the 2024 election cycle had raised expectations of significant action in the crypto space early in his administration.
Bitcoin, the world’s largest cryptocurrency by market cap, faced headwinds over the past day, declining 4.3% to around $103,600 in early trading, according to The Block’s Price Page. Bitcoin has shown relative resilience compared to the volatile altcoin market, where leading tokens like Solana and Cardano dropped 7% and 8%, respectively, over the same period. Bitcoin’s current price remains about 5.5% below its record high of $109,000, which was reached on Sunday.
Broader market conditions contributed to the sell-off, with significant liquidations across the cryptocurrency space. Over the past 24 hours, 235,490 traders were liquidated, resulting in total losses of approximately $626 million, according to Coinglass. Long positions accounted for $453 million of the liquidations, highlighting a sudden shift in market sentiment.
Adding to the challenges, data from blockchain security firm Blockaid highlighted a sharp rise in malicious activity tied to Trump-themed tokens that have no association with the sitting president.
According to Blockaid CEO Ido Ben-Natan, the launch of the Official Trump memecoin coincided with a 206% spike in malicious tokens bearing Trump-inspired names and a 14x increase in impersonator decentralized applications.
"As for the broader impact on the crypto industry, scams are an unfortunate byproduct of innovation and growth," Ben-Natan told The Block. "If anything, the increasing sophistication of attackers underscores the growing value of the onchain economy."
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