1. Basic Situation of Price Surge and Plunge

From the chart, it can be seen that TRUMP Coin and MELANIA Coin experienced dramatic price fluctuations in a short period:

Initially low prices with limited market attention.

Rapid surge (peak at $82): The price skyrocketed in a short time, increasing over 500%, attracting a large amount of short-term speculative funds.

Plummeting drop (falling back to $19): After a brief spike, the price quickly retreated, dropping over 75%, leading to a collapse in market sentiment.

This trend is extremely common in meme coins, primarily due to market speculation and capital games. Next, we will analyze the underlying logic from multiple perspectives.

2. Characteristics of Meme Coins and the Speculative Nature of TRUMP Coin and MELANIA Coin

Meme coins are speculative cryptocurrencies driven by social media trends, internet culture, or celebrity effects, with their prices typically depending on:

• Community sentiment (FOMO effect)
• KOL (Key Opinion Leader) hype
• Short-term capital games
• Market sentiment fluctuations

The essence of TRUMP Coin and MELANIA Coin is the same, with the following core characteristics:

Politically driven: The topic of Trump officially taking office as President of the United States in 2025 has become a market focus. Melania Trump, as the First Lady, also has a certain level of recognition, attracting market attention.

Emotional capital influx: Speculators leverage Trump's influence to create the concept of "politically related cryptocurrencies," triggering capital speculation. The market experiences strong short-term FOMO (fear of missing out) sentiment, with retail investors rushing to buy.

Lack of actual value support: These tokens have no real application scenarios and no technical support, relying solely on market speculation.

High possibility of manipulation by whales: A large number of early tokens are concentrated in a few addresses, and whales create a surge to attract retail investors, then quickly dump to profit.

The typical lifecycle of such meme coins is surge - plunge - silence, and the trend of TRUMP Coin and MELANIA Coin completely fits this characteristic.

Compared to traditional meme coins (like DOGE, SHIB), politically themed coins exhibit three major mutated characteristics:

| Dimension | Traditional Meme Coins | Political Themed Coins | |--------------------|------------------------|-------------------------| | Value Anchoring | Community Consensus | Probability of Political Events | | Volatility Triggers | Technical/KOL Hype | Policy Trends/Public Sentiment Monitoring | | Lifecycle | Monthly Cycle | Weekly Ultra-Short Cycle | | Liquidation Mechanism| Market Natural Clearing | Whale Targeted Liquidation |

This mutation causes the risk exposure of politically themed coins to be geometrically amplified. CoinMetrics statistics show that the average lifespan of such tokens is only 17 days.

3. External Factors Intensifying Market Volatility

1. Political speculation from the 2024 U.S. election and Trump's official inauguration as President

During Trump's presidential campaign in 2024 and after his inauguration in 2025, market attention on related concepts is extremely high. Trump's social media statements and campaign dynamics will provide short-term stimulation to TRUMP Coin.

• However, the problem is: these politically related coins are not officially recognized, and their value entirely relies on market speculation.
• Once market enthusiasm cools down, prices will quickly return to rational levels.

1. KOLs (Key Opinion Leaders) fanning the flames

Some social media KOLs (like those on Crypto Twitter, Reddit, and TikTok meme communities) boost prices during market surges, but their goal is often to arbitrage using traffic:

• They may build positions at low prices and then attract retail investors through promotion.
• When market sentiment is high, KOLs may sell off early, causing prices to collapse instantly.

1. Whale manipulation + liquidity issues

Meme coins have shallow market depth, and a small amount of capital can push prices up. When prices are high:

• Whales start dumping to cash out, causing a "waterfall" drop.
• Due to a lack of long-term investors, market liquidity quickly dries up, accelerating the decline.

The trends of TRUMP Coin and MELANIA Coin show typical liquidity traps:

• Volume surges at high prices: Whales gradually distribute tokens.
• Accelerated plummet after breaking key support levels: Market confidence collapses, leading to panic selling by retail investors.

4. Data Analysis: Losses After Retail Investors Take Over

Based on on-chain data and market volume analysis, short-term investors in TRUMP Coin and MELANIA Coin suffered significant losses:

• Investors who bought at the high of $82 and held until $19 lost over 75%.
• 90% of trading volume occurred during the surge, indicating that most funds entered at high prices.
• Due to insufficient liquidity, some investors even found it difficult to sell smoothly.

This indicates that most retail investors became the "liquidity outlet" for whales, ultimately bearing the risk of price collapse.

5. Warnings for Investors

The cases of TRUMP Coin and MELANIA Coin once again validate the "bubble characteristics" of meme coins, bringing the following warnings to investors:

1. Stay away from assets without actual value support.

2. The price of meme coins entirely depends on market sentiment; once the enthusiasm fades, prices are nearly impossible to maintain. Be wary of the joint harvesting by KOLs and whales.

3. The market is flooded with "pump" behaviors, where some social media influencers use retail investors' FOMO psychology to drive up prices and then quickly cash out. Avoid chasing highs and selling lows to prevent being manipulated by market sentiment.

4. Investments should be based on fundamental analysis rather than short-term emotional fluctuations. Increase awareness of market manipulation. The surge and plunge of TRUMP Coin and MELANIA Coin, on the surface, are driven by market sentiment, but essentially, they are whales using market hotspots to harvest retail investors.

5. Allocate assets reasonably to avoid single bets. Investment portfolios should diversify risks rather than fully speculate on high-risk assets.

Conclusion

The trends of TRUMP Coin and MELANIA Coin fully demonstrate the irrational prosperity and bubble burst process of meme coins:

• Short-term political hotspots trigger speculation, leading to heightened market sentiment.
• Short-term speculative funds flood in, causing rapid price increases.
• Whales offload, retail investors take over, triggering a liquidity crisis.
• Market enthusiasm cools down, and coin prices ultimately return to silence.

For investors, this incident serves as a reminder: "Meme coins are a casino, not an investment."

If you cannot accurately judge market sentiment, it is best to stay away from such high-risk speculative varieties to avoid becoming "chopped leeks" by whales.

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