Melania Trump Enters the Meme Coin Arena, Prompting Ethical Scrutiny
Donald Trump with Melania Trump. The launch of Melania Trump’s meme coin briefly hit the price of Donald Trump’s coin. Photograph: Daniel Cole/Reuters
Former First Lady Melania Trump has entered the cryptocurrency fray with the launch of her own meme coin, $Melania. This move mirrors her husband, former President Donald Trump’s recent foray into the digital currency market. The announcement has ignited concerns about potential conflicts of interest, particularly as the new administration appears poised to ease regulations on the volatile cryptocurrency sector.
The launch of $Melania came amidst a surge in cryptocurrency values, coinciding with Donald Trump’s return to the White House. The timing of the launch raised immediate alarms among ethics experts.
Initially, the price of Trump’s own token, $Trump, soared to over $70, tripling its value shortly after its introduction. This gave it a market value exceeding $14 billion. However, the launch of $Melania caused a pullback, with investors shifting their focus to the new coin.
Norman Eisen, who served as an ethics advisor in the Obama administration, expressed his concerns to the Washington Post, stating that this situation might represent a severe conflict of interest. Eisen pointed out Trump’s vested interest in the crypto industry due to it being both a source of potential personal gain and an area he is positioned to regulate.
Cryptocurrencies have gained significant traction since Donald Trump’s election victory in November. This rise corresponds with indications he will move to deregulate the sector.
On Monday, Bitcoin hit a new all-time high of $109,241, marking an increase of over 5%. Dogecoin, boosted by support from billionaire Elon Musk, also saw gains, jumping nearly 5%. Ethereum experienced a 3.5% increase, reaching $3,384.
Trump promoted his $Trump token on social media: “It’s time to celebrate everything we stand for: WINNING! Join my very special Trump Community. GET YOUR $TRUMP NOW.” CIC Digital LLC, a company owned by Trump, is stated to own 80% of the token’s supply, according to the meme coin’s website.
The token rapidly gained prominence, entering the top 20 cryptocurrencies. Blockchain analysts noted that its popularity significantly impacted the market, drawing liquidity away from other coins. This led to a decline in value for other cryptocurrencies, as traders redirected their investments into $Trump.
Melania Trump’s launch produced a similar market reaction. Many traders moved from $Trump to the new $Melania token. “The Official Melania Meme is live! You can buy $MELANIA now,” read a post on X that was subsequently reposted by her husband.
In the wake of $Melania’s debut, $Trump saw its price drop by more than half, falling from $75 to $30. It later recovered somewhat, trading around $64. The market capitalization of $Melania reached as high as $13 billion.
Analysts at The Kobeissi Letter commented on X, expressing disbelief at the rapid market shifts. “Less than 48 hours ago, Donald Trump launched $trump which just erased $7.5bn in market cap in 10 minutes. In the minutes around the launch of Melania Trump’s token, we saw massive sell orders in $trump.”
Meme coins, often inspired by internet memes, are a type of cryptocurrency with fluctuating values and no inherent utility. They are known for their volatility. A coin launched by “Hawk Tuah girl” Haliey Welch, for example, saw a 95% decline shortly after its release.
Traders have described meme coins as a form of gambling, akin to a lottery ticket. While the notional values of the Trump-affiliated meme coins have reached billions, cashing out could prove difficult without significantly affecting the price. However, they could still generate substantial income for Trump-controlled companies as lock-up periods end over the next several months, during his presidency.
The $Melania meme coin is marketed by MKT World LLC, a Florida-registered company owned by Melania Trump, formerly Melania Knauss. The owners are permitted to sell the meme coin after 30 days.
Ben El-Baz, the managing director of digital asset exchange HashKey Global, stated that: “The meme coins have amplified bitcoin’s momentum, with retail traders optimistic about Trump reaffirming his commitment to the crypto industry.”
Some crypto enthusiasts welcome the Trump meme coin, seeing it as a positive symbol of the former president’s support for an industry that felt unfairly targeted by the Biden administration. Trump has promised crypto-friendly regulations and selected supporters for key government roles.
However, the move has also sparked concerns about potential conflicts of interest and criticisms about attempts to gain a personal benefit from public office.
During his presidential campaign, Trump released crypto trading cards, generating over $4 million per release. Trump’s sons, Eric and Donald Jr., also entered the cryptocurrency space with World Liberty Financial in 2024. This triggered conflict-of-interest concerns.
The $Trump meme coin’s website includes a disclaimer which states the intent of the meme coin. It is not considered an investment and bears no connection with a political campaign or office. A similar disclaimer can be found on the $Melania meme coin website.
