Meme-themed cryptocurrencies have been a controversial part of the crypto industry, where their lack of real-world utility and high volatility has been a big concern. The world’s attention has shifted toward this category with the introduction of Donald Trump’s TRUMP and FOTUS’s MELANIA memecoin.
However, controversies began to float as these two cryptos continue to make headlines for their meteoric rises and collapses. This blog will discuss why investors should no longer hold them.
Reasons Why Not To Hold TRUMP and MELANIA Memecoin
The crypto industry is chaotic, where nothing remains stable, not the market trend, the crypto hype, or the performance of the tokens. The present scenario is the crypto market crash, which liquidates millions of assets and requires smart trading, especially in the meme category, where tokens have long suffered.
Many politicians’ crypto associations have failed, including the Argentinian president-endorsed LIBRA crash, Central Africa’s CAR crash, and many others. In this list, the TRUMP and MELANIA memecoin are also in trouble. Here’s why.
1. Extreme Volatility and Poor Performance
Both the Official Trump and Official Melania meme coins had a great start in the market, with the valuation reaching billions of dollars within days. Many investors earned hefty profits at that time, but that was all. Soon, the tokens began to decline, leaving the late retail investors with hefty losses.
At present, TRUMP memecoin trades at $11.40 after an 85% decline from its prime, whereas MELANIA memecoin trades at $0.8389 after a 94% decline from its prime.
This showcases their extreme volatility and declines in investors’ confidence, especially when whales heavily dumped the TRUMP & MELANIA recently. Many analysts believe it will not hit their prime again. This is claimed as the U.S. president hasn’t mentioned his meme coin for long.
2. Regulatory Scrutiny and Potential Legal Consequences
Ever since this Trump-themed crypto launch, the House Democrats have expressed objection. The main argument is that the president should not get involved with such a volatile asset. More importantly, it benefits at the cost of others’ loss.
The TRUMP memecoin alone generated more than $100M in trading fees, benefiting insiders and the team while the holders suffered. At the same time, some experts like Reuters’ report revealed high insider trading in the case of both tokens, underscoring the risk of investing in such politically driven memecoins.
Recently, the California Democrat Rep. Sam Liccardo introduced the MEME Act (Modern Emoluments and Malfeasance Enforcement Act), prohibiting top U.S. officials and their families from issuing or endorsing digital assets, including memecoins.
Although the bill is just being discussed and has limited chances of approval, it shows the growing regulatory concerns about the TRUMP and MELANIA meme coins, especially regarding ethical conflicts.
3. Opaque Ownership and Ethical Concerns
The most significant issue and topic of discussion surrounding these two cryptos is the missing ownership structure. More importantly, some reports claim that CIC Digital and Celebration Cards (companies tied to Donald Trump) are secretly profiting from the trading fees, raising ethical concerns.
Additionally, on-chain analytics reveal the transfer of massive tokens to some wallets without purchase, hinting at insider trading. These objections and controversial points will constantly affect the price of the tokens.
Final Thoughts
In recent years, meme-themed cryptocurrencies barely managed to grow from volatile assets to speculative opportunities. Their demand grew significantly in 2024 due to their rapid gains with minor trends. However, TRUMP, MELANIA memecoin, and others have high risks, including volatility, legal scrutiny, and questionable transparency.
Experts TRUMP price prediction sees higher risk in the politically charged tokens due to the evident collapses of tokens like LIBRA, CAR, and others.
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