Traders Sell Trump's Memecoin For Melania's, $TRUMP Plummets

The world of cryptocurrency has been abuzz with the launch of not one, but two meme coins affiliated with the incoming US President, Donald Trump, and his wife, Melania Trump. The first coin, $TRUMP, was launched by the president-elect himself and quickly gained traction, with its value tripling to over $70 in a short span of time.

However, the launch of Melania Trump's rival coin, $MELANIA, has sent shockwaves through the market, with investors piling in and causing the value of $TRUMP to plummet. "The Official Melania Meme is live! You can buy $MELANIA now," she posted on X, which was reposted by her husband.

$MELANIA also got listed in the top 20 of all cryptocurrencies, reaching a market capitalisation of $13 billion. Some traders also sold Trump's memecoin for Melania's.

The launch of $MELANIA has been seen as a savvy move by the incoming First Lady, who is marketing the coin as a way to foster "support" and "engagement" with her fans. However, some have raised concerns about the coin's distribution, with blockchain analytics platform Bubblemaps revealing that nearly 90% of the coin's supply is held in a single wallet. This contradicts the claims made on the coin's website, which stated that 35% of the tokens were allocated to the project team, 20% each to treasury and community, 15% to the public, and 10% for liquidity.

Despite these concerns, the launch of $MELANIA has been hailed as a success, with the coin's value reaching as high as $13 billion. However, the impact on $TRUMP has been significant, with the coin's value falling by over 50% in a matter of hours. This has raised questions about the potential for conflict of interest, with some critics accusing the Trump family of using their political influence to profit from the cryptocurrency market.

Apart from this, per the Guardian, crypto developer "cygaar" also raised an issue of lack of protection from cybersecurity service Cloudfare as it was hastily created on January 18.

As the cryptocurrency market continues to evolve and grow, it is clear that the launch of $TRUMP and $MELANIA has sparked a new wave of interest and investment in the industry. However, it also shows that there are significant risks and challenges associated with investing in cryptocurrencies, and that regulators and investors must be vigilant in ensuring that the market operates in a fair and transparent manner.

It's notable that cryptocurrencies have made significant gains since Trump's victory in November, since he has plans to deregulate the crypto sector.