The first family. Photo: Alex Brandon/Getty Images)
The biggest news in the entire world Monday is the second inauguration of Donald Trump as U.S. president, and crypto traders are selling that news, as they are wont to do.
Why it matters: The Trumps shocked the markets and news junkies this weekend by launching two meme coins, TRUMP and MELANIA, which together had fully diluted market caps in the tens of billions almost immediately.
Yes, but: They each lost around 20% in value as the inauguration ceremony began.
- As of about 1pm ET Monday, Official Trump (TRUMP) has a market cap for the total supply of $41 billion.
- Melania Meme (MELANIA) is at $8.4 billion.
- However, smart traders pay more attention to the liquid supply, which is a fraction of the total in both cases.
Between the lines: Each token has released a small portion of their maximum possible supply, but both plan to keep selling into the market, gradually.
- If the two tokens don’t rally again, that’s going to put pressure on the Trump family companies to find ways to keep the tokens buzzy, or watch fresh offerings get met with crickets.
💭 Brady’s thought bubble: This volatility really isn’t that surprising.
- Traders tend to sell around big news events associated with crypto assets, and every indication suggests these tokens were created with the inauguration in mind.
What we’re watching: If they recover around later news events in the new presidency or gently fade away, as the lion’s share of meme coins do.
