Donald Trump’s entry into the meme coin market caused a spike in interest in cryptocurrency.
Donald Trump’s entry into the meme coin market caused a spike in interest in cryptocurrency. On Jan. 18, Trump launched the Official Trump (TRUMP) token, followed by Melania Trump’s Melania Meme (MELANIA) token just days before his inauguration. Both tokens gained attention at the outset but saw substantial drops soon after.
The launch led to a significant surge in search interest for the keyword “crypto.” Google Trends data showed that interest in the term hit its highest point since November 2021, when Bitcoin’s price surpassed $67,000. Alongside the TRUMP token, terms like “meme coin,” “buy crypto,” and “Solana” also saw marked increases in searches.
Interest was not limited to search terms; the launch of the tokens also spurred a surge in crypto app downloads. By Jan. 22, apps such as Crypto.com, Moonshot, and Coinbase ranked highly in the finance section of the U.S. Apple App Store. Other crypto-related apps like Coinbase Wallet, Robinhood, and Binance.US also saw spikes, with several landing in the top 30 free apps of the category.
Interestingly, the TRUMP meme coin attracted a new wave of crypto investors. A survey by NFTevening on Jan. 20 revealed that 42% of those purchasing the TRUMP meme coin were entering the cryptocurrency space for the first time. This uptick in interest marked a notable shift as many newcomers explored the crypto world due to the attention the Trump-related tokens brought.
Despite the initial buzz, not all reactions were positive. Crypto investigator Coffeezilla criticized the meme coin launch, stating it could be considered a crime. California Representative Maxine Waters also voiced concerns about the potential national security risks posed by the TRUMP meme coin.
As for the tokens themselves, the initial excitement was followed by sharp declines in value. Prices of the TRUMP and MELANIA tokens dropped more than 60% from their peak values, leaving many investors with significant losses. Reports from community members highlighted millions of dollars in losses, demonstrating the volatile nature of the cryptocurrency market.
The launch of Trump’s meme coins illustrates the unpredictable nature of crypto investments, where rapid price swings and heavy speculation can lead to substantial financial risk. While the TRUMP and MELANIA tokens caused a temporary surge in interest, it remains to be seen whether the excitement will have any lasting impact on the market. The meme coin craze has reminded investors of the inherent risks of entering speculative markets driven by hype and public figures.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
