- The Trump Family’s Meme Coins
- The former president is betting on crypto
- Why meme coins are a bad investment
Trump’s new meme coins spark investor skepticism—even among speculators. The new meme coins associated with former President Donald Trump and First Lady Melania Trump have raised skepticism among well-known investors—even those who thrive on speculation.
“These things [meme tokens] have no intrinsic value. They simply reflect how much liquidity there is and how extreme the speculative frenzy has become,” said Carson Block, founder and chief investment officer of Muddy Waters Capital. “Right now, all the signals suggest there’s just too much of it.”
He added, “Short-selling something at the heart of a speculative craze is a really bad idea. When something is detached from reality, it can become even more detached before it finally snaps back. So I wouldn’t do it.”
The Trump Family’s Meme Coins
Trump’s meme coin, known as $TRUMP, was launched on January 17, 2025, on the Solana blockchain, marking a significant moment in the cryptocurrency world. Created by CIC Digital, a subsidiary of the Trump Organization, the token is positioned as a symbol of support for Donald Trump and his political platform. Its launch, coming just ahead of Trump’s inauguration, drew attention from both supporters and critics.
On Wednesday, January 29, the official Trump meme token ($TRUMP-OFFICIAL USD) was trading just above $27, after hitting a peak of $73 the day before the inauguration. The coin’s market capitalization currently exceeds $5 billion.
Melania’s meme coin (MELANIA-OFFICIAL-USD), launched a day before the president’s inauguration, surged to nearly $5 before dropping to around $2.30 per coin.
The former president is betting on crypto
On Wednesday, shares of Trump Media and Technology Group (DJT) surged 15% after the parent company of Truth Social announced plans to expand into financial services and potentially invest in Bitcoin (BTC-USD) and other digital assets.
“Truth.Fi is a natural extension of the Truth Social movement,” said Devin Nunes, CEO and chairman of Trump Media, in a statement. “We started by creating a social media platform for free expression, added an ultra-fast streaming service, and now we’re moving into investment products and decentralized finance.”
Why meme coins are a bad investment
Meme tokens are cryptocurrencies inspired by internet memes, artwork, or pop culture. There are hundreds of them, with some of the most well-known being Dogecoin (DOGE-USD) and Shiba Inu (SHIB), both featuring dog-themed branding.
However, many prominent investors criticize these types of tokens. David Einhorn, founder of Greenlight Capital, recently warned against the hype surrounding meme coins, stating in a letter: “We’ve reached the ‘Fartcoin’ stage of the market cycle.
For context, Fartcoin is a meme coin launched on the Solana blockchain on October 24, 2024. It quickly gained popularity thanks to its humorous branding and community-driven approach. The cryptocurrency was created as part of an AI experiment called Terminal of Truth, blending humor with blockchain technology. Using internet jokes—particularly those about “farting”—Fartcoin has engaged meme enthusiasts and injected a sense of fun into the serious world of crypto trading.
Anthony Scaramucci, founder of Skybridge Capital and former White House communications director under Trump, cautioned that retail investors could be left “holding the bag” due to the extreme price volatility of both Trump coins.
Trump himself appears indifferent to his own meme coin’s performance. A disclaimer at the bottom of both Trump’s and Melania’s crypto websites states that the tokens are “not intended to be, nor should they be considered, an investment opportunity, investment contract, or security of any kind.”
When a reporter asked Trump about his token on Tuesday, he responded: “I don’t know much about it, other than the fact that I launched it. I heard it’s been very successful. I haven’t checked—where is it today?”
The launch of these meme tokens has faced backlash from cryptocurrency supporters, who argue that such projects undermine efforts to establish the industry as a serious financial sector. “The crypto community is a bit embarrassed by this,” said Ric Edelman, founder of the Council for Financial Professionals on Digital Assets. “We have to restrain ourselves from seeing this as a distraction that could slow down the path toward legitimization, growth, and widespread adoption of cryptocurrencies by billions of people worldwide.”
