The cryptocurrency world found itself at the center of heated debate this week after two memecoins tied to incoming U.S. President Donald Trump and First Lady Melania Trump soared to astronomical valuations. Critics argue that the couple’s back-to-back token launches amount to “pump and dump” schemes, while supporters maintain that the memecoins tapped into a wave of enthusiastic investors.

A Rapid Series of Trump’s Memecoin Launches
The first meme coin, named Official Trump (TRUMP), launched on January 18 and quickly surged to a market cap of around $15 billion. Just one day later, a second token, Melania (MELANIA), was introduced, hitting a peak value of over $13 billion in hours before retreating to around $7.3 billion.
This sudden one-two punch of high-profile token releases has attracted significant attention from traders, media outlets, and financial analysts. Some have praised the ingenuity and marketing prowess behind the launches, while others question whether the tokens’ success is sustainable—or even legitimate.
Accusations of a “Pump and Dump”
Almost as soon as MELANIA hit the market, allegations of greed began to surface. Critics noted that the timing of the second token’s debut seemed designed to capitalize on the hype surrounding TRUMP’s massive valuation. In a pointed remark, Bianco Research president Jim Bianco stated on January 19,
“You were right if you thought the smashing success of $TRUMP would make Trump greedy.”
Financial analyst Michael A. Gayed went a step further, describing TRUMP as a “pump and dump” scheme. He argued that the dramatic price surge—followed by a sudden drop once MELANIA launched—showed signs of classic market manipulation. Edward Dowd, founder of Finance Technologies, added on X, “We are witnessing the largest unforced error ever made before a Presidential inauguration… unbelievable,” referencing the sharp decline in the meme coin’s value.
Market Reaction and Price Swings
The launch of MELANIA triggered an immediate market reaction. TRUMP’s market cap reportedly fell by about 38% within hours. This raised concerns that investors were rotating funds from it into MELANIA or simply cashing out before further dilution.
José Maria Macedo, co-founder of Delphi Labs, speculated that “insiders who helped launch $TRUMP didn’t realize how much it would pump and either didn’t buy enough or sold too early.”
He continued, “They rushed to run it back with $MELANIA and make sure they filled their bags this time. In their greed, they nuked $30 [billion] of value, transformed the optics into pure grift, and probably committed a bunch of crimes too.”
Meanwhile, broader crypto market conditions provided a volatile backdrop. Bitcoin’s price dipped almost 6% over the same period, slipping from about $105,900 to below $99,650, according to TradingView data. This downward trend added another layer of uncertainty for investors weighing the risks of jumping into the Trump-themed tokens.
Experts Weigh In on Regulatory Risks
Ryan Selkis, a Trump supporter and former CEO of crypto research firm Messari, expressed alarm at the apparent lack of market savvy behind the memecoin launches. He advised that the incoming president “fire” whoever managed MELANIA, arguing they “don’t know what they’re doing” and fail to protect Trump’s interests. Selkis also highlighted the possibility that regulators could scrutinize the launches, given the size of the market caps and the speed of the price swings.

Others contend that the tokens’ hype might cool off as quickly as it heated up. With both TRUMP and MELANIA still boasting combined valuations of over $16 billion, the question is whether investors will continue to pour money into these highly speculative assets—or bail out before further losses occur.
Conclusion:
While the Trump-associated meme coins have undoubtedly captured the public’s attention, the controversy raises broader questions about the risks of rapid token launches, the ethics of celebrity-endorsed cryptocurrencies, and the fine line between savvy marketing and potential market manipulation. As the new administration prepares to assume office, many wonder how increased regulatory scrutiny may affect the future of these tokens—and whether the Trump family will choose to press on or step back.
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FAQs
1. What are TRUMP and MELANIA tokens?
They are meme coins tied to Donald Trump and Melania Trump, launched amid intense market debate.
2. When were these tokens launched?
TRUMP launched on January 18, and MELANIA followed just one day later.
3. What were the peak market valuations of the tokens?
TRUMP surged to a market cap of around $15 billion, while MELANIA peaked at over $13 billion before retreating.
4. Why are the token launches being labeled as “pump and dump” schemes?
A: Critics argue that the rapid back-to-back launches manipulated hype to artificially inflate prices before a sharp drop.
5. How did the market react after the release of MELANIA?
A: The launch of MELANIA led to a swift 38% drop in TRUMP’s market cap, sparking widespread volatility.
6. Were broader cryptocurrency markets affected by these launches?
A: Yes, during the controversy, Bitcoin’s price dipped almost 6%, adding to the overall market uncertainty.