Incoming US First Lady Melania Trump’s memecoin ‘$MELANIA’ shakes crypto market

The incoming First Lady, Melania Trump, launched her own memecoin - $MELANIA – over the weekend, surging to a market cap of $10.1 billion shortly after its release. The introduction of the $MELANIA coin immediately impacted the $TRUMP meme coin, launched by her husband, President-elect Donald Trump, just days earlier.

"The Official Melania Meme is live! You can buy $MELANIA now," she posted on the social platform X (formerly known as Twitter) on Sunday. Donald Trump will begin his second term in the White House after taking the oath of office from Supreme Court Chief Justice John Roberts on Monday.

In the days following his inauguration, Trump unveiled a new cryptocurrency token named $TRUMP. Promoted as a digital collectable to symbolise community support, the coin's value experienced significant volatility, surging from an initial $10 to approximately $70 before stabilising around $45.

The Trump Organization's affiliate, CIC Digital, organised the sale, retaining a substantial portion of the coins and benefiting from trading activities.

Similarly, the $MELANIA website stated that the coin was not intended as an investment but merely as a digital collectable to express support and engagement with related values and artwork.

The introduction of $MELANIA had a notable impact on $TRUMP's market performance. Following the launch of Melania's coin, $TRUMP's value experienced a sharp decline, dropping nearly 40 per cent from its peak. This volatility highlighted the speculative nature of memecoins and the influence of high-profile individuals on market dynamics.

What are memecoins?

Memecoins are cryptocurrencies inspired by internet jokes, memes, or pop culture trends. Unlike traditional cryptocurrencies like Bitcoin, memecoins are often created more for fun, community bonding, or speculation. Their value primarily depends on hype, online popularity, and how much people talk about them.

One of the most famous memecoins is Dogecoin, which started as a joke based on the Shiba Inu dog meme but later became widely known thanks to endorsements from the world’s richest man Elon Musk. Another example is Shiba Inu Coin, which emerged as a "Dogecoin killer" and built its community through viral campaigns.

Are memecoins regulated? 

Memecoins are mostly unregulated, which means there are few rules about how they're created, traded, or promoted. This can make investing in them very risky. Governments and financial authorities worldwide are starting to focus on how to regulate cryptocurrencies, including memecoins, to protect people from scams or market manipulation.