Meme coins are a particularly intriguing part of the cryptocurrency space because they can drive remarkable price increases within days or even hours. However, they can cause a lot of pain and disappointment when (most of them) inevitably crash.
The dangers are magnified when it comes to the same wedges thrown by the president-elect of the United States and the former and future first lady.
The Trump Meme Coin Saga
The final weekend before Trump’s inauguration was shaping up to be the calm before the storm. However, that couldn’t be further from the truth due to Friday night’s event. launch of the official Trump – a coin supported and endorsed by Donald Trump.
Given its stature and upcoming role, the token has attracted all eyes to itself and exploded in value. At one point, it was close to being among the top 10 largest cryptocurrencies by market capitalization, with its own having reached almost $15 billion. That’s right, $15 billion attracted in a day or two.
He exceeds more established memes like PEPE and SHIB before the latter eventually reclaimed its place as the second largest in its field, but the current difference is entirely negligible.
TRUMP’s price peaked at around $75, according to CMC and CG, before the next presidential team decided to move the markets again on Sunday evening and introduced one piece meme Melania. This had a multiple effect: the Trump family’s new token skyrocketed, reaching a high of $13 (CMC), while its “older” sibling fell 50% at one point, wiping out billions of its market capitalization.
It fell from the aforementioned high of $75 to $38 in a matter of hours before regaining ground to just under $60 now.
Liquidations on the rise
The price drop caused by TRUMP also affected the rest of the market. BTC fell from its monthly high of just over $106,000 to under $100,000 in about an hour, and most altcoins followed suit with massive price drops.
Despite recovering from overnight lows, assets like SOL, DOGE, ADA, AVAX, SUI, and XLM fell 6-8%. Even more painful declines come from PEPE, EFP, APT and others.
Naturally, these developments led to a cascade of liquidations across the market. The total value of positions destroyed over the past day is around $1.2 billion, with over 400,000 traders liquidated.
Although the largest order destroyed involved BTC, TRUMP’s token also saw $140 million in liquidations, putting it ahead of more established assets like SOL, DOGE, and XRP.
These developments continue to raise the important question of whether the introduction of not one, but now two coins by the future first family is good or bad for crypto.
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