When Melania Trump’s cryptocurrency token wiped $5 billion from Donald Trump’s memecoin – The Times of India

Donald Trump’s cryptocurrency token dropped 38% in value on Friday after his wife Melania Trump launched her own competing digital coin, erasing $5 billion from the token’s market capitalization just days before his presidential inauguration.
The TRUMP token’s price fell from $74.60 to $45.90 within 40 minutes of Melania Trump announcing her own MELANIA token, according to CoinMarketCap data. Meanwhile, the First Lady-elect’s new cryptocurrency skyrocketed to a $6.14 billion market value within two hours of launch.
“It’s time to celebrate everything we stand for: WINNING! Join my very special Trump Community,” Donald Trump posted on social media on January 17, promoting his token. The marketing featured Trump with a raised fist alongside “FIGHT FIGHT FIGHT,” referencing his response to an assassination attempt during a July political rally.
Over 45,000 digital wallets have purchased the MELANIA token since its launch Thursday evening, though blockchain analytics platform Bubblemaps reported that nearly 90% of the token supply is held in a single wallet, contradicting the project’s claimed distribution structure.
Critics warn these politically-linked tokens could enable undue influence from special interests and foreign entities. “If people want to gamble, I don’t really care,” said Lee Reiners, a former Federal Reserve economist now at Duke University. “What I care about is when this crypto bubble bursts — and it will burst — it will end up impacting people across the economy even if they don’t have direct investment in crypto.”
Supporters view the Trump memecoin as symbolic of the incoming president’s pro-cryptocurrency stance, which contrasts with the perceived hostility of the outgoing Biden administration. Trump has pledged to implement crypto-friendly regulations and has appointed industry advocates to key government positions.
The TRUMP token initially sold for $10 before surging to $70 by Sunday morning. The token’s website claims 35% was distributed to the team, with other allocations for treasury, community, public sale and liquidity.