The announcement sent shockwaves through the crypto world.
Just minutes later, Donald Trump himself reposted her announcement during his Victory Rally, fueling the fire even further.
$MELANIA Launch Triggers $TRUMP Price Drop
The timing couldn’t have been worse for $TRUMP holders. Just as $MELANIA launched, buyer demand for Donald Trump’s memecoin, $TRUMP, collapsed. Its supply surged.
The Official Melania Meme is live!
You can buy $MELANIA now. https://t.co/8FXvlMBhVf
FUAfBo2jgks6gB4Z4LfZkqSZgzNucisEHqnNebaRxM1P pic.twitter.com/t2vYiahRn6
— MELANIA TRUMP (@MELANIATRUMP) January 19, 2025
The domino effect was immediate. Less than 48 hours earlier, $TRUMP had erased $7.5 billion in market cap in just 10 minutes, as the number of sellers far outpaced the number of buyers. Leading up to the launch of $MELANIA, there were about 38,500 sellers for every 13,300 buyers, a ratio of roughly 3 sellers for each buyer.
This imbalance had kept prices rising, but as soon as $MELANIA was launched, the situation flipped. Within just one hour after the launch, seller volume surged to $352 million, while buyer volume lagged at only $245 million. This led to a sharp drop in $TRUMP’s price, as the ratio of buyers to sellers fell to just 1.3x.
Moments later, we posted on X that the coin had launched.
Prior to Donald Trump reposting her announcement, $TRUMP was little changed.
After the repost and our breaking news post, $TRUMP fell -55% in minutes.
Consider turning on @KobeissiLetter notifications. pic.twitter.com/y8AiDY0XIO
— The Kobeissi Letter (@KobeissiLetter) January 19, 2025
$MELANIA Launch Triggers $10B Sell-Off
What followed was nothing short of chaos. In the minutes around the $MELANIA launch, massive sell orders flooded the market. According to the flow log, there were several sales over $1 million and even a few above $5 million in $TRUMP. The selling pressure was so intense that Solana, the blockchain supporting $TRUMP, saw its value drop nearly 20% in a matter of minutes.
In the moments after the launch of $MELANIA, we saw seller volume FAR outweigh buying volume.
In 1 hour, there was $352 million of seller volume for just $245 million of buyer volume.
The ratio of buyers to sellers fell to just 1.3x which led to a massive crash in price. pic.twitter.com/rLc82E5ux9
— The Kobeissi Letter (@KobeissiLetter) January 19, 2025
The market took a major hit, with over $10 billion in market cap erased across all memecoins following the launch. In the 24 hours since, $2 billion in volume has flowed through $TRUMP alone, highlighting just how quickly momentum can shift in this volatile space. The launch of $MELANIA has shown just how fast fortunes can change in the world of crypto, leaving many investors with whiplash as they try to make sense of the fast-moving market.
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