Crypto Coins Launched By Trump, Melania Crash Post US President's Oath-Taking

1 day ago

Last Updated:January 21, 2025, 19:30 IST

The value of the newly launched meme coin, named after Trump, plummeted by nearly 50% to $34.4, after hitting a peak of $74.59.

Donald Trump and Melania Trump (Reuters)

Donald Trump and Melania Trump (Reuters)

The swearing-in of Donald Trump as the US President has affected the cryptocurrency prices significantly with the many digital assets, including Bitcoin, witnessing a sharp decline.

Besides, the newly launched Trump-branded token also experienced a sharp pullback on Tuesday.

Despite reaching an all-time high of $109,071 on Monday, world’s largest cryptocurrency, Bitcoin’s price dipped. It was last traded at $101,705.40, news agency Reuters reported.

Similarly, the value of the newly launched meme coin, named after Trump, plummeted by nearly 50% to $34.4, after hitting a peak of $74.59.

This comes after Trump’s inaugural speech on January 20 in which stressed on his plans for imposing trade tariffs and amending immigration policy, energy deregulation, and a reprieve for TikTok with no mention of highly volatile cryptocurrencies.

It was anticipated by many that the prices of the digital assets would rise further after Trump’s White House takeover but the lack of mention of it has left many disappointed.

“I think in the short term there’s a chance this could be a sell-the-news event," Reuters quoted Matthew Dibb, chief investment officer at crypto asset manager Astronaut Capital as saying. Dibb added that crypto investors had been anticipating some executive actions to be rolled out during Trump’s first day in office.

“The market has some great expectations about a bitcoin strategic reserve and a loosening of regulations around digital assets, but it’s more likely these developments will be drip-fed over a series of months rather than days. Bitcoin has already retreated … We are expecting further volatility here and likely a selloff," Dibb further said.

However, his administration had been widely anticipated to introduce key regulatory changes or even lay the groundwork for a “Bitcoin strategic reserve" that could strengthen the cryptocurrency’s legitimacy from the perspective of institutional investors.

Trump has chosen Mark Uyeda, a Republican member of the US Securities and Exchange Commission, to be acting chair of the agency and plans to tap former SEC Commissioner Paul Atkins to run the agency permanently.

Atkins is likely to end a crypto crackdown led by former President Joe Biden’s Democratic SEC chair Gary Gensler and Uyeda has slammed the SEC for failing to offer guidance on how crypto companies can register with the agency.

Trump’s Involvement In Cryptocurrency Market Raised Concerns

However, Trump’s involvement in the cryptocurrency market has raised concerns over potential conflicts of interest.

Trump’s rolling out of the $TRUMP token and the $MELANIA token, for First Lady Melania Trump, just before his inauguration creates new conflict-of-interest concerns, ethics experts and industry insiders said.

Announcing the meme coin’s launch, Trump had posted on X on January 18, “My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING! Join my very special Trump Community. GET YOUR $TRUMP NOW. Go to gettrumpmemes.com — Have Fun! (sic),"

While First Lady Melania Trump also took to X to announce the launch of $MELANIA coin.

She tweeted, “The Official Melania Meme is live! You can buy $MELANIA now(sic)."

Interestingly, 80 per cent of Trump coin’s tokens are owned by CIC Digital, an subsidiary of Trump’s business, and another entity called Fight, Fight, Fight, according to its website.

Location :

Washington D.C., United States of America (USA)

First Published:

January 21, 2025, 19:22 IST

News business Crypto Coins Launched By Trump, Melania Crash Post US President's Oath-Taking

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