Summary I believe the launch of $TRUMP and $MELANIA meme coins isn't an indictment of the crypto space but a fun way to show political support. The launch of these meme coins on Solana has sparked a media frenzy, but they are not intended as investments, according to their own creators and myself. Both coins have concentrated supply distribution, making them susceptible to "rug pulls," though current political optics might deter such actions, in my view. I believe investing in meme coins like $TRUMP and $MELANIA is as risky as gambling, with any gains likely due to luck rather than strategy. Despite the political novelty, the continuity of US institutions should reassure observers. I see these meme coins as a blip in a broader context of American influence. In this article, I present my thoughts about the recent launch of two meme coins by the 47th President of the United States and the First Lady: Official Trump ( TRUMP-USD) and Melania MEME ( MELANIA-USD ). For the sake of readability, I will refer to these two coins as $TRUMP and $MELANIA in the rest of the article. This article is not intended as a recommendation to trade these meme coins or any other cryptocurrency. All projects mentioned are based on my own research and experience and should not be taken as investment advice. Don’t overthink it Before diving into the technical details of the Trump family meme coins, I want to touch on what I mean by "not overthinking" their launch. Over the last few days, I've noticed a heated debate about these meme coins, which many people have turned into a political argument. Here are some of the opinions I've come across: Trump’s launch of meme coins invalidates the entire Crypto space. People are losing significant money and being "scammed" by these coins. These meme coins suggest that the Trump administration isn't serious about Crypto. In my opinion, these reactions are all forms of "overthinking" what are essentially just fun tokens meant to show support for a political persona. In the Crypto world, creating a new coin has always required very little technical knowledge and could be done in minutes, well before $TRUMP and $MELANIA were launched. This, in my view, doesn't mean that established projects like Bitcoin or Decentralized Finance ((DeFi)) applications on the blockchain are undermined. Exactly like the launch of a commemorative coin or a tourist faux-gold medal does not affect global finance. Regarding people losing money, I personally feel no more sympathy for those investing in meme coins than for those gambling in a casino. As I'll show in the rest of this article, these coins are clearly not meant to be investments and should not be treated as such. I do believe these launches may signal deregulation in the crypto industry and provide political opponents with ammunition against some of this administration's policies - something I covered in my most recent article about Bitcoin. However, I do not think they indicate a complete policy pivot concerning crypto, like the claim that the Trump administration might want to purchase them as part of a US "strategic reserve". $TRUMP and $MELANIA: a media event Donald and Melania Trump launched their own “meme coins” on the week-end before the US president's inauguration, with blockchain "tickers" $TRUMP and $MELANIA. For readers unfamiliar with the crypto space, a meme coin is a cryptocurrency that is inspired by memes or internet culture, lacking any intrinsic value or serious technological purpose, and primarily driven by social media hype and community engagement. Donald and Melania Trump's announcement of their meme coins (X.com) Both meme coins are based on the Solana ( SOL-USD ) blockchain, a technology that has recently been on the rise due to the meme coin frenzy and overall cryptocurrency bull market of the last few months. Solana currently ranks as the fifth largest blockchain project, but second only behind Ethereum ( ETH-USD ) among blockchains that focus on supporting applications in DeFi, gaming, and digital art. As a crypto enthusiast, my personal opinion is that Solana's success largely comes from its low transaction fees, enabling easy trading of cryptocurrencies within its ecosystem. However, this advantage comes with a trade-off: Solana is frequently criticized for its relatively centralized structure. The proliferation of low-effort cryptocurrency projects on Solana might explain why, as a crypto enthusiast, it took me over 30 minutes to identify Trump's "official meme coin" among the many similarly named meme coins on Ethereum, Solana, and other blockchains. Similarly, shortly after Melania Trump launched her own meme coin (just one day after her husband), numerous Trump-themed coins appeared on Solana and other blockchains, likely aiming to capitalize on the surrounding media coverage. At the time of writing and from my location, searching for "official trump coin website" leads to a series of fraudulent sites unrelated to the official Trump meme coin. Many of these coins have been launched with the likely intent to fraud, leading to "rug pulls" where unsuspecting investors lose their money (I'll discuss the concept of "rug pulls" and the dynamics of meme coins in the following paragraphs). I see the creation of these "copycat" coins, along with the rapid increase in valuation of both Trump meme coins post-launch, as a reflection of the significant media attention this event received, with numerous news outlets covering the story. Tokenomics: not great The official websites of $TRUMP and $MELANIA meme coins state very clearly that neither token is to be intended as an investment. Both websites feature an identical disclaimer, which I report below from $TRUMP’s official website: Trump Memes are intended to function as an expression of support for, and engagement with, the ideals and beliefs embodied by the symbol "$TRUMP" and the associated artwork, and are not intended to be, or to be the subject of, an investment opportunity, investment contract, or security of any type. GetTrumpMemes.com is not political and has nothing to do with any political campaign or any political office or governmental agency. Regardless of the fact these meme coins are clearly not intended as investments, I still think it’s interesting to analyze the tokenomics behind these coins - that is, their supply, distribution, and utility. $MELANIA and $TRUMP whitepapers (official TRUMP and MELANIA websites) The above image, roughly equivalent to the coins’ “ whitepaper ”, summarizes the tokenomics of these two projects. The Tokenomics of $TRUMP and $MELANIA differ slightly, with the main differences being: $TRUMP’s supply released at launch is at 10%, against 15% for $MELANIA. The unlocking period (that is, period until when the whole supply will be released) for $TRUMP is longer than that of $MELANIA, at 36 months against 13 months. $TRUMP’s whitepaper states that 90% of the coin goes to ‘creators’ and other legal entities connected to Trump’s associates. On the other hand, $MELANIA’s whitepaper uses more general terms such as “Community” or “Treasury”, without specifying exactly who is behind these terms. Despite these differences, both coins in my opinion suffer from the same fundamental issue: their supply is extremely concentrated in a few hands, likely those of their creators (i.e. Trump’s associates). This is a potentially dangerous setup, as it allows holders to release a large amount of supply at once, crashing the coin and draining demand. This is what’s called “rug pull” in the crypto space. A prominent example occurred earlier this year when a U.S. social media influencer faced backlash after her token was rug-pulled. Of course, a rug pull isn't guaranteed just because a coin's tokenomics permits it. Ultimately, it all comes down to the intentions of the coin's creators and those holding the majority of its supply. I obviously have no inside information about the possibility of a rug pull with these two meme coins, but if I were to bet, I'd be reluctant to say one will happen soon. The reason, very pragmatically, is that the new US presidency has just begun, and the potential for some extra cash would, in my opinion, be far outweighed by the negative publicity. That said, I might be wrong. And again, I strongly advise against investing in these meme coins, or any meme coins, as a form of investment or a quick way to make money. If you choose to invest, you won't find more sympathy from me than if you decided to gamble at a casino. In my view, both meme coins are merely fun tokens meant to showcase political support. Risks This article is not intended as a recommendation or suggestion to trade any cryptocurrency, including $TRUMP or $MELANIA meme coins. Despite this, I want to spend a few words to once again warn readers about the potential dangers of treating meme coins as investments. Investing in cryptocurrencies, and especially meme coins, carries inherent risks that go beyond the potential for financial loss; even when investors manage to profit, these gains can often be attributed more to luck than to strategic foresight. The crypto market is notorious for its volatility, where prices can skyrocket or plummet based on whims, social media trends, or unfounded rumors rather than on solid fundamentals or economic indicators. This means that what might seem like a savvy investment today could quickly turn sour without any clear reason. Additionally, the lack of regulatory oversight in many crypto markets amplifies this risk, leaving investors vulnerable to market manipulation and scams. Investors should approach with caution and be fully aware of these dangers. Conclusion The new President of the United States and his first lady launched two meme coins just ahead of inauguration. This is definitely a first in history, and might very well open them to ethical and moral attacks by opponents, especially if these meme coins do end up losing the majority of their value. However, I believe investors should not overthink this. Fundamentally, these are just fun tokens to showcase appreciation for a political party. Exactly like Trump already launched gold coins, and as many other commemorative physical coins exist. Purely from an investment standpoint, I highly recommend investors not to purchase neither $TRUMP, nor $MELANIA as an investment. They are not to be intended as such. My "HOLD" recommendation refers to holding these coins as fun tokens to showcase political support, and should not be intended as investment advice. A final word for unity I am not an American citizen, nor do I reside in the United States. However, as someone looking in from the outside, I've consistently observed that American institutions maintain a strong continuity between administrations. I am deeply thankful to the US for its role in ensuring my parents were born on the “right side” of the Iron Curtain in my home country, Italy. And I continue to be grateful for the US's efforts in safeguarding global peace and fostering values of personal and economic freedom globally. Moral and ethical evaluations of politicians are frankly outside my expertise and interest. I firmly believe that America will continue to act as a force for good, much as it has for the last 70+ years, no matter which party holds office. The launch of a meme coin by a president does not alter this belief. I encourage readers not to overthink these actions. I know I won't.
