Investors who bet on the rise of these memecoins suffered losses amounting to nearly $70 million. Many investors had hoped that Trump's initial political moves would be favorable for the cryptocurrency sector. However, his early executive orders did not address this area, leading to market disappointment.
The launch of the $TRUMP and $MELANIA tokens also raised concerns among investors and cryptocurrency industry representatives due to potential conflicts of interest, as many of these tokens are owned by companies linked to Trump's businesses.
In addition to the $TRUMP and $MELANIA tokens, other cryptocurrencies, including Bitcoin, experienced significant declines. Bitcoin, which had reached a record high of $109,071, fell to $101,705.
It was earlier reported that then-President-elect Donald Trump announced the launch of his own cryptocurrency, the $TRUMP memecoin. Within the first hour of its launch, the market capitalization of $TRUMP reached $3 billion, and within an hour and a half, it exceeded $4 billion.
As of Jan. 19, Trump's cryptocurrency had achieved a market capitalization of $68 billion.
Melania Trump, the wife of the newly inaugurated U.S. president, also launched her own memecoin, briefly causing a dip in her husband's cryptocurrency.
There was also information suggesting that the daughter of the newly elected U.S. President might launch her own cryptocurrency.