In the ever-evolving world of cryptocurrency, Donald and Melania Trump have thrust themselves into the spotlight by launching their respective memecoins—projects whose value is driven primarily by speculation. What began as a playful venture into crypto has now taken on more serious implications, as regulators and market observers warn of rampant copycats, investor confusion, and “enormous risk.”
Memecoins—cryptocurrencies rooted in cultural references or online humor—have long fascinated both retail investors and market observers. Successful tokens like Dogecoin, Shiba Inu (SHIB), and Pepe (PEPE) harness internet virality, celebrity promotion, and community enthusiasm.
However, many of these assets are highly speculative, often lacking a conventional business model or practical application. The overall memecoin market cap has hovered near $78 billion in recent weeks, though individual tokens can soar or crash in hours. Influencers and politicians can dramatically sway prices through endorsements—or, conversely, can spark rapid sell-offs through criticism.
Recent data analyzed by the Financial Times reveals that more than 700 unofficial, or “copycat,” tokens referencing “Trump” or “Melania” have been deposited into the official Trump memecoin wallet. These deposits, made by unknown creators, appear to be an attempt to suggest the new tokens have the former president’s endorsement. However, neither Donald Trump nor Melania Trump is officially associated with those copycats.
• 736 different memecoins have landed in the official Trump wallet over the past few weeks.
• Nearly 200 of these use words like “OFFICIAL TRUMP” or “OFFICIAL MELANIA” in their names, despite having no connection to the family.
• The flood of knockoff coins began immediately after the announcement of the official “Trump Coin,” with the first copycat minted within 30 minutes of the launch.
Because these tokens appear in a high-profile wallet, traders may assume they carry an “official” stamp of approval—prompting concerns that investors could be misled and face significant risk.
Donald Trump’s own memecoin, along with Melania Trump’s $MELANIA memecoin, debuted with the promise of providing “exclusive access” to events and collectibles. Critics, however, argue that these tokens offer little tangible utility and instead stoke speculation at a time when the broader cryptocurrency market is under heightened scrutiny by regulators:
1. Highly Volatile: Memecoins frequently experience wild price swings driven by hype or social media chatter.
2. Regulatory Uncertainty: U.S. agencies such as the Securities and Exchange Commission have recently intensified oversight of crypto projects, focusing on transparency and the classification of digital assets as securities.
3. Risk of Confusion: The proliferation of Trump-themed copycat coins underscores how challenging it can be for newcomers to distinguish legitimate projects from scams.
SEC Chair Gary Gensler resigned on January 20, ceding regulatory leadership to David Sacks (see cartoon), the White House’s newly appointed “AI and Crypto Czar.” Sacks, a known advocate for blockchain innovation, has hinted at a more business-friendly approach to cryptocurrency oversight. Analysts anticipate that any shift in SEC policy may be tempered by lawmakers’ growing unease around high-risk tokens, including $TRUMP and $MELANIA. David Sacks has indicated that $TRUMP is to be considered a collectible and thus treated in law congruent with a baseball card.
Observers note that the sheer number of new tokens created—often in a matter of minutes—is outpacing the ability of both investors and exchanges to evaluate them properly. With nearly one million tokens appearing weekly across various blockchains, it is no longer feasible for exchanges to vet every new coin individually.
At the same time, lawmakers and financial watchdogs have signaled a desire to tighten rules on digital asset promotions. Analysts note that Donald Trump’s high profile has drawn regulators’ attention to memecoin activity, which historically sat closer to the fringe of the crypto space.
A flurry of Trump- and Melania-themed memecoins reflects a broader trend: token creators leveraging recognizable names for rapid gains. According to crypto analytics platforms:
• Low Liquidity: Many of these copycat coins have very low trading volume and limited liquidity, making it nearly impossible to establish a fair market value.
• Skyrocketing “Notional” Values: Some tokens tout eye-popping “notional” values. One coin named after Trump’s youngest son briefly soared to a notional worth of $6 billion on paper, but actual trades were negligible, and the token’s price quickly plummeted.
• Speculative Hype: A handful of traders buy and sell large amounts of fake or copycat tokens within seconds, often for modest or no profit, amplifying market volatility.
Economists and policy experts warn that these memecoin surges—especially those tied to a polarizing political figure—could further encourage “FOMO” (fear of missing out) investing, drawing in retail traders who may be unaware of the risks, thus in their opinions Trump has opened the floodgates to rampant speculation.
Despite these risks, supporters of Donald Trump have shown enthusiasm for crypto projects that carry the former president’s name, while Melania Trump’s coin has carved out its own niche community of collectors. Whether these tokens will maintain relevance—and real value—amid an increasingly vigilant regulatory landscape remains to be seen.
What began as a novel entrance into the memecoin realm for Donald and Melania Trump quickly escalated into a cautionary tale of crypto hype, speculation, and opportunistic copycats. With hundreds of knockoff tokens flooding the Trump wallet and regulators sharpening their gaze on questionable crypto promotions, the saga highlights both the promise and pitfalls of digital assets. As authorities tighten oversight and the market battles its own growing pains, the fate of Trump and Melania memecoins—and their many imitators—will be a telling indicator of how the next chapter of crypto regulation unfolds.
On February 9, 2025, the Central African Republic (CAR) launched its own memecoin, $CAR, aiming to enhance the country’s global visibility, promote development, and unite its citizens. The initiative, announced by President Faustin-Archange Touadéra, follows CAR's past cryptocurrency ventures, including Bitcoin’s brief legal tender status in 2022 and the failed Sango Coin project. The $CAR token is designed as an experiment to explore how meme-based cryptocurrency could aid national unity and economic progress, with funds allocated for development, creators, liquidity, charity, and public distribution. Launched on the Solana-based Pump.fun platform, the coin's total supply is set at 1 billion tokens.
The launch of $CAR has been marked by volatility and controversy. Although the token initially saw a market cap surge to over $900 million, it quickly dropped by more than 75%, now valued around $50 million. The project has faced criticism over transparency, as its website and social media accounts were suspended soon after launch, and concerns were raised about the concentration of tokens in a few wallets. Some critics label the project speculative and question its potential to provide lasting benefits in a country struggling with poverty and instability. Despite these challenges, President Touadéra remains optimistic that the $CAR project can position CAR as a leader in blockchain innovation, though its future remains uncertain.
The exchange Coinbase celebrated a strong performance in its fourth-quarter results, capping off a successful year both in terms of business and politics. The company expressed optimism for the future, with a shareholder letter claiming that the "era of regulation via enforcement," which had previously hindered the crypto industry in the U.S., is coming to an end, partly due to Donald Trump’s election.
While Coinbase's revenue surged by 138% year-over-year (2023/24) to $2.27 billion, it still didn't reach the peak of $2.498 billion seen in the fourth quarter of 2021. This shortfall largely stemmed from a significant decline in consumer trading, which accounts for a large portion of Coinbase's transaction revenue. In Q4 2023, consumer trading volume dropped to $94 billion, roughly half of what it was three years ago, affecting overall earnings.
However, there was notable growth in the fourth quarter compared to the previous year, driven in part by trading in meme coins—such as Pepe and Wif—suggesting an unexpected surge in speculative trading. Memecoins have become a contemporary trend in crypto, reminiscent of the NFT craze, offering an extremely volatile but potentially lucrative market. Coinbase’s success with meme coins in Q4 is expected to be further amplified in the current quarter, especially after President Trump launched his own memecoin.
Looking forward, there’s ample opportunity for growth in more stable crypto trading, especially as major financial institutions like E-Trade explore entering the market. While this could introduce more competition for Coinbase, it also lends credibility to the crypto sector. As the industry's pioneer, Coinbase stands to benefit from this growth, provided that the volatility of meme coins doesn't deter investors.
