The TRUMP and MELANIA meme coins, launched by Donald and Melania Trump, have drawn retail investors but remain heavily concentrated among whales.
The recently launched TRUMP TRUMP $10.75 24h volatility: 5.1% Market cap: $2.15 B Vol. 24h: $1.09 B and MELANIA MELANIA $0.26 24h volatility: 3.0% Market cap: $165.42 M Vol. 24h: $14.85 M meme coins, introduced by former US President Donald Trump and First Lady Melania Trump, have sparked significant interest and controversy. Blockchain analytics firm Chainalysis has revealed that crypto whales, entities holding $10 million or more in these tokens, control a staggering 94% of the combined token supply.
Smaller investors, those with holdings ranging from $1 million to $10 million, account for just 2.1% of total supply, while wallets holding between $100,000 and $1 million represent 1.7%. Chainalysis added that TRUMP and MELANIA holders owning less than $100 accounts only control 2.2% of the supply, highlighting a sharp imbalance in token distribution.
The heavy concentration of wealth among a few wallets raises concerns about market liquidity and price stability. Large transactions by whales can lead to sharp price fluctuations, making the tokens prone to volatility. This dynamic creates an uneven playing field where smaller investors struggle to influence market movements.
Retail Surge amid New Wallets
Despite whale dominance, the meme coins have attracted a wave of retail buyers. Chainalysis reported that over 80% of TRUMP and MELANIA holders are retail investors with assets below $1,000 on the Solana blockchain. Notably, nearly half of these buyers created their wallets on the same day they purchased the tokens, underscoring the tokens’ appeal among new crypto users.
As of now, around 790,800 wallets hold the TRUMP token, while 343,382 own MELANIA. However, the tokens’ prices have faced significant declines. TRUMP, which briefly surged to a peak of $75 on January 19, now trades at $35.81—a 52% drop from its high. Its market cap, once exceeding $14 billion, currently stands at $7.09 billion. MELANIA has experienced an even steeper decline, dropping 80% from its $13 peak to its current price of $2.85, with a market cap of $475 million.
Amid the persistent volatility, Chainalysis reported that as of January 21, over 77% of wallets holding TRUMP have gained less than $100 in profits. However, 60 whale wallets have managed to earn over $10 million. On the other hand, only a small fraction of TRUMP holders have incurred losses ranging between $10,000 and $100,000, with very few, if any, losing more than $100,000.
Trump Family Meme Coins Face Ethical Concerns
The launch of these meme coins has sparked ethical and regulatory debates. Critics argue that the significant ownership of the tokens by Trump Organization affiliates could lead to conflicts of interest, raising concerns about potential misuse for political or financial gain.
Adding fuel to the controversy, President Trump jokingly remarked during a recent meeting, “I don’t know much about it other than I launched it. I heard it was very successful.” While his comment may have been lighthearted, it drew criticism, especially as both tokens face sinking prices.
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