Trump Launches Meme Coin

Trump launching a meme coin was one of the most significant cultural events in crypto history. Nobody expected a former President of the United States to create a cryptocurrency.

The launch created a massive buzz in the crypto space. The X timeline was ablaze for two days—you couldn’t scroll without seeing the $TRUMP ticker. Imagine being a crypto founder about to launch your own token, only to lose traction because everyone was focused on Trump’s coin. Other cryptocurrencies also suffered losses as funds flowed out of them and into the TRUMP coin.

While this event brought significant attention to crypto and attracted many new users, its overall impact was not all sunshine and rainbows.

The TRUMP coin quickly climbed into the top 25 cryptocurrencies globally, with its price peaking at $75 before crashing to $50 within hours. The situation got even more interesting when Melania Trump launched her own meme coin the following day. Money started flowing out of the TRUMP token and into MELANIA. Many new investors ended up losing money in the process.

The coin was launched on the Solana network, which became overwhelmed by the sudden surge in traffic. Solana deposits and withdrawals on Coinbase were delayed for hours, creating an uncomfortable situation for holders trying to move funds in or out of the exchange. Delays like these can significantly impact user holdings because, in such scenarios, it is very likely that Solana's price will fluctuate significantly. Having funds locked by the exchange for hours could result in losses or a lot of unrealized gains.

On the bright side, Solana witnessed record-breaking DEX volume, hitting $27 billion—five times Ethereum’s $5 billion over the same period.

For many people, the TRUMP token was their first experience with cryptocurrency. This was evident as apps like MoonShot soared to the #1 spot on the App Store. Hundreds of thousands of people got into the space to get their hands on the TRUMP coin. Unfortunately, with the sudden price crashes, many of these new users lost money and now view crypto as risky or even scammy.

Trump is incredibly famous, rivaling Elon Musk in terms of influence, and I’m unsure how to feel about his meme coin. On one hand, it brings immense attention to crypto. On the other hand, it’s just a meme, and the retail investors losing money make crypto seem like a pure casino in the public eye.

I expect more celebrities and politicians to launch their own meme coins in the future. While this will undoubtedly bring more attention and users to the crypto space, it will also introduce more scams and risks.