Key Highlights:
- The total market capitalization of the Trump and Melania memecoins dropped by 56% to $10.9 billion within 24 hours.
- The surge in these memecoins was linked to capital moving away from established tokens like DOGE, SHIB, PEPE, and POPCAT.
- Scam investigator Coffeezilla expressed doubts about the legitimacy of both memecoins.
Market Overview
The inauguration festivities initiated by President-elect Trump’s family coincided with the introduction of the TRUMP and MELANIA memecoins, driving an inflated market cap at one point exceeding $17 billion, surpassing well-known tokens such as Shiba Inu (SHIB) and Avalanche class AVAX.
Speculates indicate that capital inflow was more of a shift than new investment, primarily reallocating from established memecoins, which have been popular in recent months.
While some investors reported substantial profits, the precarious nature of these tokens may soon become apparent as investor excitement potentially wanes with the introduction of newer options.
Coffeezilla remarked, “Everyone knows this is a grift, this isn’t going to be around in four years and there’s nothing of value here.”
Further Implications
Upon the launch of TRUMP, significant losses followed for memecoins like DOGE and SHIB, indicating heavy outflows towards Trump-themed tokens.
As these tokens settle around $11 billion in market cap, with $6.3 billion exiting the market over 24 hours, investors from the retail sector find themselves particularly endangered, amidst concerns over regulatory issues highlighted by influencer Hailey Welch, and the rise of copycat tokens like BARRON and IVANKA.
Regardless of the profitability tales circulating, the speculative landscape of memecoins remains risky, necessitating cautious navigation from potential investors.
