TL;DR
- President Trump’s inaugural speech avoided crypto topics, causing TRUMP and MELANIA tokens to crash.
- TRUMP token dropped 43%, while the MELANIA token plunged over 60% due to unmet crypto policy expectations.
- Experts warn of the risks of celebrity-driven tokens and emphasize the speculative nature of meme coins.
The crypto market experienced significant turbulence following President Donald Trump’s inaugural speech, which notably omitted any mention of digital assets. This omission led to a dramatic plunge in the value of the newly launched TRUMP and MELANIA tokens.
Market Reaction to Trump’s Speech
On January 20, 2025, President Trump was sworn in as the 47th President of the United States. The crypto community had high expectations for his speech, hoping for announcements of pro-crypto policies or the establishment of a Bitcoin reserve. However, the absence of any reference to cryptocurrencies in his address triggered a sharp decline in the market.
TRUMP Token’s Decline
The TRUMP token, which had seen explosive growth before the inauguration, suffered a significant drop. Initially, it surged to a peak of $73.43 but plummeted by 43% to $45 following the speech.
The token’s market cap reached nearly $11 billion and fell to $8 billion. At the time of writing, the token trades at $38, losing an extra 30%. This decline was exacerbated by infrastructure issues on the Solana blockchain, where the token is based, causing transaction delays and further market instability.
MELANIA Token’s Plunge
Similarly, the MELANIA token, launched by First Lady Melania Trump, experienced a severe downturn. The token’s value dropped by over 60%, from a high of $11.41 to just $4.40. The market cap of MELANIA fell from $2 billion to $750 million within 24 hours. The sudden drop was attributed to traders cashing out their profits and the lack of anticipated crypto-friendly policies in Trump’s speech.
Expert Opinions
Industry experts have expressed concerns over the speculative nature of these tokens. Dan Hughes, Founder and CTO of Radix highlighted the potential risks of celebrity-driven token launches, suggesting that such moves could destabilize market dynamics.
Sudhakar Lakshmanaraja, Founder of Digital South Trust, emphasized the importance of substance over hype in the cryptocurrency world, noting that the crash reminds us of the volatility and speculative nature of meme coins.
Future Implications
Despite the current downturn, some analysts remain optimistic about the future of cryptocurrencies under Trump’s administration. They believe that future policies could still benefit the market and support recovery. However, the immediate impact of the inaugural speech has left the crypto community cautious and uncertain about the direction of U.S. crypto regulations.
