US President Donald Trump’s cryptocurrency meme coins, TRUMP and MELANIA, have lost significant value due to rising tariffs on China, Canada, and Mexico. The two tokens were launched by companies controlled by members of the first family earlier this month, initially creating tens of billions of dollars in new paper wealth for the president. However, their market caps have since plummeted.
The decline comes as financial markets and cryptocurrency prices continue to fall due to increased uncertainty surrounding tariffs. While some investors may be selling off assets due to inflation concerns, others are simply cashing out ahead of potential losses.
Notably, a recent tranche of new meme coins is scheduled for release in March, which could further exacerbate market volatility. As the Trump Organization prepares to capitalize on this influx with their coin, investors will closely watch the president’s popularity and economic indicators to determine whether they can recoup their investments.
It appears that while President Trump’s meme coin did attract some new users to the cryptocurrency market, it is unclear how much profit remains for these investors. The launch of TRUMP and MELANIA also raised concerns among crypto luminaries about the industry’s credibility.
Source: https://www.axios.com/2025/02/03/trump-meme-coin-10-billion-tariffs