Whales suffer losses as Trump family's meme coins plummet

On January 21, 2025, significant losses were reported among cryptocurrency investors known as "whales" following the rapid decline of meme coins associated with the Trump family.

Just days after Donald Trump was inaugurated as the 47th President of the United States, his meme coin, Official Trump (CRYPTO:TRUMP), launched on January 18 and initially surged to a peak of over $75, inflating its market cap to nearly $15 billion.

However, by January 21, the token had plummeted almost 57% to around $33.

An on-chain analyst highlighted a notable transaction involving a wallet named "Ansem," which had invested 9.38 million USDC (CRYPTO:USDC) to acquire 194,799 TRUMP tokens at an average price of $48.14.

The wallet subsequently sold its holdings at $35.04, resulting in a loss of approximately $2.55 million.

In a similar vein, another whale purchased 440,136 Melania Meme (CRYPTO:MELANIA) tokens for 20,185 Solana (CRYPTO:SOL), translating to an investment of $5.1 million at a price of $11.60 per MELANIA.

Following the token's decline, the investment is now valued at only $1.56 million, marking a floating loss of about $3.53 million.

The Melania token also experienced volatility after its launch on January 19, initially reaching a high of $13.73 before dropping over 58% within 24 hours to trade at approximately $3.72.

Despite these losses, some traders reported significant gains from these tokens.

However, the launch has drawn criticism for potential conflicts of interest and accusations that it serves as a cash grab by the Trump family.

Ki Young Ju, CEO of CryptoQuant, suggested that meme coins may remain a prominent trend in the crypto market through 2028.

Additionally, Trump's inaugural address did not mention cryptocurrency, leaving many in the community puzzled about his administration's stance on digital currencies moving forward.