This week in crypto: $TRUMP memecoin and task force launch

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There was a lot of activity in the digital currency world this week as newly inaugurated President Donald Trump took office, which immediately had an effect on the space.

Official $TRUMP token launches on Solana

Three days before Trump’s inauguration on January 20, his team launched $TRUMP, a meme token on the Solana blockchain. The token’s official website declared, “This Trump Meme celebrates a leader who doesn’t back down, no matter the odds.” While the site emphasized that $TRUMP is “not an investment opportunity, investment contract, or security of any type,” the token’s price soared after going live. When CoinGecko began tracking it, $TRUMP was priced at $6.54. Within hours, it skyrocketed to an all-time high of $72.62. However, it appears that Trump later tried to distance himself from the token, stating he didn’t know much about it beyond its launch and that he “heard it was very successful.”

BREAKING: Trump on $TRUMP meme coin, says "I don't know much about it other than I launched it. I heard it was very successful, I haven't checked it. Where is it today?"

Reporter: "You made a lot of money sir"

Trump: "How much?"

Reporter: "Several billion dollars, it seems… pic.twitter.com/5Ec7TJseLW

— unusual_whales (@unusual_whales) January 21, 2025

Back-to-back Trump memecoin launches: $MELANIA token

However, the $TRUMP token was not the only coin to be released, and it was subsequently pumped and dumped by the Trump administration leading up to inauguration day. One day after the $TRUMP launch, Melania Trump released her own meme token, $MELANIA. Speculators initially rushed to buy $MELANIA, fueled by FOMO from either winning big or missing out on the $TRUMP pump. When CoinGecko began tracking $MELANIA, it was priced at $8.48 and briefly peaked at $13.05 before crashing to $3.68, all within three days.

The Official Melania Meme is live!

You can buy $MELANIA now.  https://t.co/8FXvlMBhVf

FUAfBo2jgks6gB4Z4LfZkqSZgzNucisEHqnNebaRxM1P pic.twitter.com/t2vYiahRn6

— MELANIA TRUMP (@MELANIATRUMP) January 19, 2025

So why was the $MELANIA launch underwhelming compared to the $TRUMP launch? The launch was not met with the same enthusiasm, creating many critics and skeptics who claimed that back-to-back launches were no more than a cash grab. A move like this made it clear that the Trump administration treats digital currency as a money-making opportunity rather than a legitimate industry. The back-to-back token launches sent a clear message to the digital currency community that Trump may not be doing as much good for the industry as they hoped he would.

‘Crypto’ absent from Trump’s inauguration agenda

To add insult to injury, the words “blockchain” and “cryptocurrency” were absent from Trump’s January 20 inauguration speeches and executive orders. The administration’s “First Priorities” document focused on border and immigration policies and energy infrastructure, leaving digital currency enthusiasts disappointed, as they expected explicit digital currency support from Trump beginning on his first day in the White House. At this point, many people in the industry seemed to be losing confidence in Trump’s ability to shepherd digital currency into greener pastures. His series of what could be called missteps, especially the token launches, left a bitter taste in the mouths of digital currency advocates.

Trump pardons Silk Road founder and launches ‘Crypto Task Force’

JUST IN: Silk Road Founder Ross Ulbricht seen out of prison following pardon from President Trump. pic.twitter.com/90zsIL4Ve2

— Watcher.Guru (@WatcherGuru) January 22, 2025

However, the following day, Trump appeared to be making amends. On January 21, the administration pardoned Ross Ulbricht, creator of the Silk Road darknet marketplace and a figure deeply entangled with Bitcoin’s history. This move was widely celebrated in the digital currency community and viewed as a gesture of implicit support for the industry.

https://truthsocial.com/@realDonaldTrump/113869112741612092

Additionally, the Securities and Exchange Commission (SEC) launched a crypto task force on January 21, appointing digital currency-friendly Commissioner Hester Peirce as its leader. The group’s mission is to establish clear regulatory frameworks for the industry.

During an interview at the World Economic Forum (WEF) on January 22, Circle CEO Jeremy Allaire expressed confidence that executive orders related to digital currency are forthcoming.

Will the Trump administration be good for blockchain?

Similar to when Trump took office for the first time in 2024, from a media perspective, there is never a dull moment when Trump is in office. He seems to like the spotlight, believes there is no such thing as bad press, and probably sees the value in making a P.T. Barnum-like display out of everything.

While the $TRUMP and $MELANIA token launches generated significant attention, they also raised concerns about legitimizing speculative projects. The blatant pump-and-dump nature of these tokens could set a precedent for the next four years, signaling that memecoins and similar schemes are acceptable under the current administration.

This type of environment would be the polar opposite of the regulatory crackdown seen during President Biden’s tenure when former SEC Chair Gary Gensler took a strong stance against fraudulent projects—which seem to have been rebranded as “meme tokens.” With Trump in office, the market could see a surge in speculative tokens with little to no utility, potentially undermining efforts to establish digital currency’s credibility and help the industry mature.

Despite the early missteps, the Trump administration could still be a net positive for the industry. Creating a crypto task force and anticipated executive orders signal a willingness to provide regulatory clarity, which will benefit industry giants asking for better policies for several years. However, the impact on retail investors will likely be minimal. This group will probably be able to speculate with fewer consequences for actions like launching meme coins, but I’m not expecting much beyond that.

I think it’s also important to note that I’m not surprised digital currency wasn’t one of the Trump administration’s first priorities. It’s estimated that only 27% of U.S. adults own digital currency, and although this is a sizable number, it is still a minority compared to other voter bases. This explains why the administration seems more focused on enabling major players in the industry rather than addressing the needs of the average investor.

As the Trump administration unfolds, the digital currency will get more time in the headlines. It will be necessary for corporations, governments, and enthusiasts to watch these developments, especially within Trump’s first 100 days in office, as they are likely to set the pace for what’s to come in the next four years.

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