Memecoins are one of the most controversial categories in the world of cryptocurrencies. Often created as parodies or experiments based on viral internet phenomena, these digital coins attract thousands of investors due to their extreme volatility and potential for explosive gains. However, this very characteristic also makes them extremely risky, often falling victim to speculation and market manipulations.
Their charm lies in the hype they manage to generate in very short times. Dogecoin, for example, was created almost as a joke, but over time it has carved out a significant role in the crypto landscape, with the support of prominent figures like Elon Musk. Shiba Inu, considered the main rival of Dogecoin, has attracted a huge community, becoming another example of success based more on speculation than on real utility.
In January 2025, two new memecoins burst onto the market: $TRUMP and $MELANIA, inspired respectively by the US president Donald Trump and his wife Melania. Their launch coincided with Trump’s inauguration at the White House, timing that raised quite a few suspicions about possible conflicts of interest or attempts at market manipulation. Their debut immediately caught the attention of investors, but within a few days, it turned into a textbook case of how dangerous it can be to speculate on this type of asset.
Memecoin $TRUMP: from the initial frenzy to the sudden collapse
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Everything started on January 17, 2025, when the launch of $TRUMP sparked enthusiasm among investors and supporters of the president. The idea of a memecoin linked to Trump immediately generated a wave of purchases and speculation, pushing the token to exceed 70 dollars in a very short time, with a market capitalization that surpassed 14 billion dollars. The frenzy was palpable, fueled by social media and discussion forums where it was speculated that the value of the coin could continue to rise dramatically.
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But the memecoin market is a minefield, and the reality has been quite different from what early investors hoped for. A few days later, the announcement of the launch of $MELANIA caught everyone off guard. No one expected another memecoin linked to the Trump family, and the news generated confusion and panic. Many investors likely saw the new token as a threat to the growth of $TRUMP and began to sell en masse. Within ten minutes, the value of $TRUMP plummeted from 75 to 30 dollars, wiping out billions of dollars in market value. Even $MELANIA experienced an initial boom, but soon followed the same downward trajectory as its predecessor, leaving both tokens in a spiral of uncertainty.
Crypto scams: how the “clone” tokens of $TRUMP deceived investors
The initial success of $TRUMP triggered a wave of wild speculation and, as often happens in these cases, scams were not lacking. Within a few days, over 700 “clone” tokens appeared on the market, trying to exploit the notoriety of the Trump brand to deceive unsuspecting investors. Some of these were blatantly scams, designed to attract funds before disappearing into thin air, leaving buyers with worthless assets.
But it was not just about fraud. Market manipulation also played a fundamental role in the affair. Pump & dump schemes multiplied, with organized groups artificially inflating the price of tokens only to sell en masse, causing sudden crashes. This type of dynamic is not at all rare in the world of memecoins, where the value of an asset can be distorted within a few hours by speculative campaigns and groups of investors with less transparent interests. Those who were not fast or experienced enough were left holding the bag, seeing their investment dissolve in a few hours, a situation that highlights how essential it is to always be on guard when operating in this market segment.
Tips for investing in memecoin with awareness
Anyone who decides to enter the world of memecoins must be aware of being in a highly speculative territory. The fundamental rule is to never invest more than you are willing to lose. As attractive as they may seem, these criptovalute are extremely volatile, and their value can crash at any moment without any warning.
Another crucial aspect is to avoid getting carried away by collective enthusiasm. The phenomenon of FOMO (Fear of Missing Out, the fear of missing a once-in-a-lifetime opportunity that will never come again) leads many people to buy assets precisely when their value is at an all-time high, only to get trapped in the subsequent crash. Carefully observing the market, verifying the reliability of the project, and identifying the true beneficiaries of the operation is essential to avoid unpleasant surprises.
Liquidity also plays a key role. A memecoin may seem promising, but if the trading volume is low or there are signs of manipulation, the risk of ending up with an unsellable asset is very high. Unlike Bitcoin or Ethereum, for example, which have technological value and a consolidated ecosystem, memecoins are often short-term bets based on hype and current trends.
Memecoin between hype and risk: lessons from the case $TRUMP and $MELANIA
The case of $TRUMP and $MELANIA has shown once again how memecoins can be dangerous for those without experience in speculative markets. Although they offer the possibility of quick gains, the risks are enormous and the line between investment and gambling is very thin. For some experienced traders, they can represent a profit opportunity, but for most investors, the extreme volatility and market manipulation make these assets extremely risky.
The difference between investing and speculating is fundamental. Memecoins, highly speculative assets often lacking intrinsic value, rely solely on momentary demand and the hype of the moment. Understanding their nature and adopting a conscious approach can make the difference between a strategic choice and a bet at the casino.
Until next time and happy trading!
Andrea Unger
