Donald Trump and Melania are facing controversy over the launch of their memecoins, which rapidly increased in value to over $15 billion.
Critics allege they were involved in a “pump and dump” scheme, leading to intense discussions in the financial and crypto sectors.
Jim Bianco, president of Bianco Research, criticized the move, stating,
“You were right if you thought the smashing success of $TRUMP would make Trump greedy,He tried to double down with a $MELANIA, but the market thinks it is a form of dilution and assumes/fears that Trump has tons of other coins in the wings to come.”
The launch of $MELANIA caused the TRUMP token’s value to plummet by 40%, as investors feared over-dilution and suspected more tokens could follow.
The controversy started with the Official Trump (TRUMP) token launch, which reached a market capitalization of $15 billion. A day later, Melania Trump introduced her memecoin, $MELANIA. The timing of these launches prompted analysts to suggest greed and potential market manipulation.
Financial analysts viewed the situation as a major misstep before Trump’s inauguration, with Edward Dowd labelling it “the largest unforced error” at that critical time. José Maria Macedo, co-founder of Delphi Labs, criticized the insiders of $TRUMP for mishandling the launch, suggesting they either didn’t buy enough or sold too soon. He noted their rushed effort to launch $MELANIA to capitalize on the situation. Ryan Selkis, a Trump supporter and former CEO of Messari, criticized the launch of $MELANIA, claiming it harmed Trump’s credibility and urged them to reconsider the decision.
Amid the controversy, Binance announced the Official Trump (TRUMP) token listing on January 19, 2025, with trading pairs TRUMP/USDC and TRUMP/USDT. Deposits will open two hours before trading starts, and withdrawals will begin on January 20, 2025. The token has a seed tag indicating high volatility and risk, requiring users to complete a risk-awareness quiz every 90 days to trade.
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