President-elect Donald Trump’s official meme coin plunged sharply Sunday evening, coinciding with the launch of another token launched by Melania Trump.
What happened: The OFFICIAL TRUMP token crashed nearly 36% from $73 to $46 late Sunday evening, wiping out nearly $5 billion worth of market capitalization, according to data from DEX Screener. The dump followed the launch of a similar token by the incoming first lady, Melania Trump.
Melania Trump shared a link to the official website of the meme coin MELANIA in her X post, with a caption, "The Official Melania Meme is live!" Donald Trump has reshared the post.
The coin, which was themed around the incoming first lady, was launched on Solana (CRYPTO: SOL), much like the token's launch tied to her husband a couple of days ago.
The meme coin's website issued a disclaimer, stating, "Melania Memes are intended for collecting and entertainment purposes only. They are not financial instruments or investments."
MELANIA token has jumped over 21,000% in the last 24 hours to a market capitalization of $11.39 billion and generating approximately $383 million in liquidity in just four hours.
Popular cryptocurrency analyst Ali Martinez revealed that he shorted the OFFICIAL TRUMP token and that it was “going well.” Earlier he announced selling all of his TRUMP tokens.
Another widely-followed cryptocurrency investor, Altcoin Gordon, disclosed opening a $500,000 short on the token.
“Liquidation is $90 If it hits $55, I will make $2.7 million. I am ready for the sell-off,” the trader revealed their strategy.
See Also: Italy’s Largest Bank Leaps Into Bitcoin Trading With $1 Million ‘Test’ Investment But CEO Says He Doesn’t Invest In BTC Personally
Why It Matters: The launch of OFFICIAL TRUMP created a stir in the cryptocurrency space, as its fully diluted valuation reached a whopping $74 billion at one time.
Reports suggested that CIC Digital LLC, an affiliate of the Trump Organization, and a related entity, Fight Fight Fight LLC, own an 80% share of the digital asset, fueling speculation of an increase in Trump’s fortune as a result of the meme coin.
However, naysayers didn't hold back. Anthony Scaramucci, a prominent cryptocurrency advocate and former White House Communications Director, labeled the launch as "Idi Amin-level corruption."
Donald Trump was all set to take the presidential oath on Monday. He has confirmed that his inaugural address will take place indoors in the Capitol Rotunda due to dangerously cold weather in Washington, D.C.
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