Trump meme coin crashes after Melania launches her own

The controversial meme coin launched by US President-elect Donald Trump earlier this week suffered a 40% drop in value on Sunday, following the debut of a competing token by the incoming first lady.

Melania Trump introduced her meme coin to her 3.4 million followers on X on Sunday evening, gaining immediate traction. Promoted across her social media accounts, it reached a $4 billion market cap within 30 minutes of its release, according to DEXScreener.

Donald Trump retweeted her post, further amplifying the token’s visibility. Within an hour, the MELANIA token had attracted nearly 20,000 investors, causing significant volatility in the crypto market. Meanwhile, the TRUMP coin – valued at $15 billion earlier in the day – lost $5 billion in market capitalization, according to CoinMarketCap data.

The MELANIA token is described on its official website as a way to “support” and “engage” with Melania Trump, though it stresses that the token is “not intended” as an investment.

The launch comes just days after the TRUMP coin’s meteoric rise. The Solana-based token introduced on Friday surged 19,000% in its first 24 hours, achieving a fully diluted market capitalization of $36 billion. Promoted by Trump himself on Truth Social and X, the token was marketed as a way for supporters to join the “Trump community.”

READ MORE: Trump meme coin hits $36 billion overnight

Ethics watchdogs have criticized the ventures, with Citizens for Responsibility and Ethics in Washington warning that Trump’s business dealings could create conflicts of interest during his presidency.

Both tokens have faced scrutiny regarding their allocation. MELANIA’s website states that 35% of its supply is allocated to team vesting, with the remainder divided among treasury, community, public distribution, and liquidity. In contrast, 80% of TRUMP’s supply is reserved for entities linked to the Trump Organization, leaving only 20% available for public investors and liquidity.

The meme coin launches come ahead of Trump’s inauguration on January 20. He has vowed to make the US the “crypto capital of the planet.” Crypto advocate Paul Atkins, Trump’s pick to chair the Securities and Exchange Commission, is expected to lead these efforts. Once a vocal critic of cryptocurrency, Trump shifted his stance during his election campaign, pledging to reshape the US cryptocurrency landscape.