The cryptocurrency space, known for its rapid innovations and speculative allure, recently witnessed a dramatic saga involving memecoins branded as TRUMP and MELANIA. Within just 24 hours, these tokens amassed $4.8 million in purchases from over 12,641 wallets. However, beneath the staggering figures lies a troubling story of opportunism, deceit, and financial loss for unsuspecting investors drawn in by the hype.
A Surge of Imitation Tokens
On January 20th, coinciding with Donald Trump’s inauguration, the Solana network was flooded with tokens falsely claiming ties to the Trump brand. Data from Cointelegraph and aggregator Birdeye revealed that over 61 tokens were marketed as official TRUMP or MELANIA coins. These imitations mimicked authenticity through ticker symbols, branding, and promotional descriptions, misleading buyers into believing they were legitimate investments.
Alan Orwick, co-founder of the Quai Network, explained that scammers exploit high-profile brands to deceive investors. Many of these tokens exhibited characteristics of “rug pulls,” where creators drain liquidity from investors and disappear, leaving them with worthless assets. The influx of malicious Trump-branded tokens spiked from 3,300 to 6,800 on January 17, the day of the official TRUMP token launch, further highlighting the scale of the exploitation.
Fragile Liquidity and Concentrated Ownership
Analysis revealed the precarious nature of these imitation tokens. Of the 38 TRUMP-themed tokens trading on Solana’s decentralized exchanges, only nine achieved liquidity pools of $10,000 or more—a bare minimum for functional trading. Within 24 hours, most of these pools were drained, leaving investors stranded. In one instance, a liquidity pool plummeted from $54,000 to just over $10,000 in a single day.
Ownership concentration added another layer of risk. In one example, 99% of a TRUMP token’s supply was held by just two wallets, allowing large holders to manipulate the market to their advantage. MELANIA-themed tokens faced similar issues, with only four of 23 tokens achieving liquidity pools over $10,000. Within hours, one of these pools was entirely drained, while others displayed severe ownership imbalances.
The Official TRUMP Token: A Double-Edged Sword
Even the official TRUMP token highlighted the speculative nature of the crypto market. Launched on January 17, it quickly soared to a $71 billion fully diluted valuation, momentarily ranking 15th by market cap. However, following Trump’s inauguration, its valuation dropped to $40 billion, pushing it to 28th place. Critics accused Trump of prioritizing personal gains, and the introduction of a MELANIA token only intensified scrutiny.
Industry figures like Nic Carter and Mark Cuban expressed concerns over the ethical and reputational implications of such projects. Carter warned against setting dangerous precedents, while Cuban lamented the harm to crypto’s credibility.
Broader Scams and Investor Losses
The exploitation wasn’t limited to Trump and Melania tokens. Scammers even targeted other Trump family members, such as a token branded as “BARRON,” named after Trump’s youngest son. One investor reportedly lost $1 million to this scam. Additionally, transactions involving Trump-affiliated entity CIC Digital fueled speculation, with tokens named after other family members appearing in wallets tied to CIC.
Lessons for Investors
The TRUMP and MELANIA token saga serves as a stark reminder of the risks in chasing trends without due diligence. Inflated metrics, liquidity manipulations, and deceptive branding highlight the volatile and often unforgiving nature of the cryptocurrency market. Investors must approach the space with caution, conducting thorough research to avoid falling victim to the next boom-and-bust cycle.
