Shortly before President Donald Trump was inaugurated, his wife Melania announced that she had released her own meme coin, called $Melania. It followed a move that her husband had made, as he had launched his own meme coin – $Trump – just a day earlier.
It’s a move that will have excited crypto fans initially, having been reflected in the uptake that had been shown towards the two digital assets.
$Trump had surpassed a value of $5 billion since it was launched, with the price of the token managing to go more than triple its initial value. This took its market capitalization to around $10.7 billion, although the release of $Melania saw this decrease briefly by around 40%.
$Melania was also able to gain a significant following and increase regarding market capitalization, with it launching at a market capitalization of $1.9 billion, ranking it inside the top 60 globally. It is being distributed on the Solana blockchain platform, with 35% of its supply alleged to be reserved by her team and frozen for the first 30 days.
Is the release of $Melania good news for crypto fans?
Some will argue that it is a good thing for the cryptocurrency industry. The clear support and backing that the President and his wife have shown toward digital assets by creating their own is perhaps the strongest indicator yet that we could see virtual currency emerge even further.
We’ve already seen it made usable as a form of currency across many sectors. Cybersecurity has been helping businesses to stay protected through its use of blockchain technology. In contrast, individual users have used crypto to keep anonymous and protect themselves when making transactions because of the security features offered. Gamers have been able to play online casino games and use a crypto casino bonus at the same time, which has been welcomed in the US, where the laws regarding fiat gambling options are complex.
Following the release of these meme coins, some believe that doors could open regarding its use. Trump has already revealed that he will be trying to make the US the “crypto capital” of the world, vowing to establish a cryptocurrency ‘czar’ to allow his administration to create regulations that are industry friendly.
Is it a scam?
However, it doesn’t appear all cryptocurrency fans believe the release of $Trump and $Melania is a good thing. Some have even gone as far as to call it a “scam”.
Many have criticized the launch of the meme coins, with some believing that he may have used the support of the crypto world as a means of getting elected. As a result, he had to release a coin to show that he would come good on his pledge of trying to create industry-friendly regulations.
At the same time, observers have noted how it can directly benefit the couple and not those who hold their tokens. As the President and First Lady own most of their coins, they can get wealthier (in actual terms) when they decide to sell their assets. This can depreciate the value of the coins for those who hold them, thus making investors worse off.
It’s something people are wary of, which is why there has been a lot of anger shown toward the release of the meme coins in the days following their launch.
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