Donald Trump’s memecoin launch last week has stolen the spotlight. It surged to a $15 billion valuation in just two days, soaring past $70 in price. Many were amazed by how quickly it rose, but the sudden jump fueled questions about whether this meteoric climb was too good to be true.
Commentators on social media and in crypto circles warned of potential trouble, suggesting the entire project might be a pump-and-dump scheme. Critics noted that the TRUMP token had already surpassed in market cap established crypto projects known for real utility, like AAVE, Uniswap, or SUI. They argued that the token was driven purely by hype, lacking any real substance, especially since it was just a Solana memecoin.
A few days later, Melania Trump introduced her own token – which seemed to pour cold water on Donald’s memecoin. Some of the capital shifted to Melania’s project, while others left the space altogether. This second launch only added to the confusion in an already volatile market, leaving investors feeling that the memecoin releases were just quick cash grabs.
Trump’s coin price dipped, showed a minor bounce on inauguration day, and then continued its decline. It’s now trading under $27. Melania’s token is performing even worse, plunging from $13 to below $2.40. While Trump’s coin might recover if he announces significant plans – such as an official TRUMP reserve – we wouldn’t count on it. Donald Trump has openly referred to his token as a “meme” and has shown no real interest in further development.
We Have Seen This Before
With both tokens crashing after the initial hype, many are asking whether this outcome was predictable. Why were so many critics cautioning about this scenario in the first place?
Although on a different scale, these events mirror previous memecoins that rapidly soared and then crashed once interest waned. We’ve witnessed countless pump-and-dump scenarios, driven by hype and subsequently left behind when that hype subsided. Here, we revisit some tokens from last year that followed a similar pattern.
Book Of Meme (BOME)
BOME was born during a wave of new memecoins on March 2024. Some from that period, like BONK, retained enough momentum to remain relevant even now. FLOKI and WIF are also still significant, though they’re not as strong as they once were.
However, BOME’s popularity is now a thing of the past. It appeared suddenly and reached a valuation exceeding $1B within days, but the hype soon faded. Today, BOME is down 85% from its all-time high and struggles to stay in the top 300 tokens, despite once placing in the top 100.
Peanut The Squirrel (PNUT)
PNUT had a different story. It was created in memory of a well-known squirrel named Peanut, which became the center of viral outrage after it was taken for rabies testing and euthanized. Public sympathy skyrocketed, prompting many to buy PNUT as a tribute.
A listing on Binance propelled PNUT’s market cap above $2B, with its price peaking over $2.20. However, once public attention shifted elsewhere, the token lost its momentum. It now sits around $0.32 and shows no signs of recovery.
ACT I: The AI Prophecy (ACT)
Around the same time PNUT was booming, ACT also took off, propelled by the overall market surge following Donald Trump’s presidential victory. Its valuation climbed to about $0.8B within days. But like PNUT, it plummeted once the initial excitement wore off, and now it remains below $0.2B in market cap.
The Story is Repeating
We’ve seen a few meme tokens manage to stay relevant, like DOGE, SHIB, and PEPE, but many fade once the thrill is gone. Whenever a brand-new coin skyrockets, it’s wise to pause and ask: is there any lasting reason for this value, or is it just hype? If it’s purely hype, early buyers might profit, but late buyers often face heavy losses.
Exchanges frequently speed up this cycle. A surprise listing on a major exchange can draw more attention, triggering one last price spike before large holders cash out. In the case of TRUMP, the narrative was similar but on a grander scale. The coin surged to $15B, boosted by hype surrounding Trump’s inauguration. After Melania’s token appeared, TRUMP’s momentum faded, leaving both coins drifting downward.
The Moral of The Story
The main lesson from all these memecoins is to spot the repeating patterns among the tokens mentioned. A coin that rockets to a massive valuation on pure hype can drop just as quickly if there’s nothing meaningful behind it.
Sometimes it’s smarter to stand back, let the dust settle, and avoid risking your money due to fear of missing out.
There may be a silent winner in all of this: every token mentioned here is built on the Solana blockchain. Each time a new memecoin frenzy appears, Solana’s network activity increases. Perhaps instead of hopping on the FOMO train, it’s best to remember the old saying: “During a gold rush, sell shovels”.
