24 January 2025

A highly volatile week but mostly in the green. Bitcoin is trading around $105,000 and is looking for a reason to breakout towards $110,000 – for all we know, the local low is already in and it’s going to be bullish hereon.

But the story of the week is not Bitcoin – it’s about Trump, his inauguration and his namesake memecoin that raised eyebrows across the world.

Today, we cover this in detail and see if this is indeed a start of a trend.

Let’s dive in.

Top-3 stories of the week:

1

2

3

The newsletter is put together by Giottus Crypto Platform. You can read all the previous issues of Cryptogram here.

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WEEKLY MACROS

• Total crypto market cap - $3.62 trillion - UP 1.4%    

• Bitcoin price - 104,752 - UP 3.2%

• The dollar index (DXY) - 107.76 - DOWN 1.3%

• Bitcoin Dominance - 58.54% -  UP 1.7%

• Crypto Fear and Greed Index - 75 - Market is in Greed

THE HOT TAKE

TRUMP: Celebrity memecoins are here to stay

Celebrity meme coins are not a new phenomenon in the crypto space. 100s of Elon Musk based memes have been around for years. However, something new happened this week – a memecoin endorsed by the person himself. The 47^th President of US announced his own memecoin before his inauguration followed by a coin by Melania, his wife.

Today, let us explore how $TRUMP and $MELANIA token launches took the world by storm this week, along with analysing the broader impact and investment decisions they pose.

The Rise of TRUMP

TRUMP Coin’s debut was nothing short of historic. Tied to US President Donald Trump, this coin leverages the potent combination of political loyalty and meme culture. Its massive appeal has brought many first-time crypto investors into the fold, eager to ride the wave of enthusiasm and nostalgia surrounding Trump’s political legacy.

Announced just hours after the departure of US SEC Chairman Gary Gensler, the token reached a staggering $10 billion market cap within hours, eventually climbing to an all-time high of over $70.

With approximately 80% of the supply held by the Trump team under a multi-year vesting schedule, the project appears to be structured with a degree of professionalism rarely seen in meme coins. The use of the Solana blockchain for the launch further cements its position as a notable event, showcasing Solana’s growing dominance in the smart contract space.

However, the coin’s success largely hinges on the Trump brand’s continued relevance. Unlike traditional crypto assets with strong utility or decentralized applications, $TRUMP Coin thrives on the emotional attachment of its holders. This makes it susceptible to volatility and unpredictable market trends.

TRUMP is currently trading at $35 – 50% down from its all-time high.

Some crazy numbers following TRUMP launch

Melania Trump followed through with her own coin

Following closely Melania, Trump’s wife decided to join the memecoin party and announce her own coin MELANIA. And you guessed it, it is built on Solana as well.

This token taps into a slightly different demographic, appealing to those fascinated by her glamour and enigmatic public image. While the MELANIA Coin’s messaging is softer and more nuanced compared to TRUMP Coin’s brash persona, it still follows the same playbook: leveraging celebrity narratives to drive interest and speculation.

And many more will follow…

The success of TRUMP and MELANIA will undoubtedly inspire a flood of similar celebrity-backed meme coins. Whether tied to athletes, actors, or influencers, these tokens will seek to capitalize on fandom and cultural trends. This growing influx of meme coins could bring fresh faces into the crypto space, further driving mainstream adoption. However, this wave of speculative projects also risks creating market confusion and investor fatigue.

We list 3 reasons why:

1. Personal gains over community gains

Meme coins like DOGE and SHIB cultivated strong community ties, emphasizing collective growth and fostering loyalty among holders. Celebrity meme coins, on the other hand, often prioritize personal gains over shared goals. These projects frequently benefit their founders or a small group of early adopters, leaving latecomers to face the risks of market downturns.

For investors, this highlights a critical distinction: celebrity meme coins are often short-term phenomena, riding the hype train rather than building sustainable ecosystems. While it’s tempting to chase quick profits, these projects are better approached with caution. If you choose to invest, consider allocating only a small portion of your portfolio to minimize risk.

2. Fakes are everywhere

How do we ascertain which coin is endorsed by the real celebrity? Already, Ivanka, Trump’s daughter has posted about a fake coin floating around.

3. A messy affair

Crypto assets will become an even more battlefield for politicians if celebrity coins take off. External influence of other nations can’t be ruled out too. The focus also diverts from the issues a person stands for to the public image and persona.

Also, who is a celebrity? There are millions of influencers with blue ticks on socials who can claim to their own set of fans. The limit is endless.

What can you do as an investor?

Celebrity meme coins thrive on speculation and emotional attachment, making them highly volatile and unpredictable. Without robust utility or long-term roadmaps, they’re often better avoided unless you’re comfortable with the risks. For those who can’t resist the allure, treat these coins as high-risk, high-reward gambles rather than reliable investments. However, if the trend picks up, investment in the underlying infrastructure (like Solana blockchain) is a prudent one. New use cases can emerge for such blockchains which can lead to wider adoption from the public.

As $TRUMP, $MELANIA, and similar tokens dominate headlines, the crypto space continues to evolve. While they bring new participants on-chain and fuel mainstream interest, they also serve as a reminder to tread carefully in this ever-changing landscape. Remember: the best investment decisions are rooted in research, caution, and a diversified approach to your portfolio.

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If you have any questions or feedback for us, write to us at [email protected]. You can check out the previous issues here.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.