The launch of $TRUMP coin and the subsequent launch of $MELANIA, has set the crypto world on fire. A few days ago, the $TRUMP meme coin was introduced to the world. Sunday afternoon, prices skyrocketed to $72, making it one of the most valuable cryptocurrencies out there.
It wasn’t long before a new story quickly arose. Sunday afternoon, $MELANIA meme coin was introduced. Created just hours before the launch, the meme coin took over the spotlight from $TRUMP. $TRUMP immediately dropped from $72 to $47 almost immedaitely after the launch of $MELANIA.
What’s Going On?
President Trump stated in 2024 that he would be a crypto-friendly president, going as far as saying that the U.S. government would invest in Bitcoin. After his election in November, Bitcoin skyrocketed from around $70,000, to over $100,000 in just a few days. Since then, the prices have been wavering between $90-105 (you can view our assessment of Bitcoin’s past few weeks here).
Many have speculated that the $TRUMP coin is a trustworthy coin that you can rely on. The chances of the President rug-pulling millions? Not likely. However, that does not mean that the coin is necessarily stable. A few investors could be putting in thousands or even hundreds of thousands early on while the price is low, simply to wait for the prices to increase, and then pull out. A fresh coin on the market is far from stable.
Should I Invest?
As we discussed in 5 Ways to Responsibly Build Wealth, investing wisely is crucial. That means avoiding meme stocks and coins, while also avoiding an attempt to time the market. The beginning of coin is a great time to make some quick cash by investing low, and quickly pulling out after the price has jumped up. But as happens many times with stocks, once you hear about them, it’s likely too late.
So is it too late now? This answer is impossible to tell, as it is impossible to say the price of these two meme stocks. If you want to invest wisely and build your wealth responsibly, don’t invest into $TRUMP or $MELANIA. However, if you have money that you’re willing to risk, money that you would otherwise be okay without, then maybe you consider investing.
Invest, or don’t invest, the choice is always the consumers. However, many find themselves in a difficult situation when they try to make a quick buck. The thought process is often “I know that people get themselves in bad places by doing this, but it will be different this time for me.”
Will it?