The cryptocurrency market sees unprecedented growth as Trump administration’s pro-crypto stance drives institutional investment, while celebrity-backed memecoins gain traction despite security concerns.
As the Donald Trump administration went all into the cryptocurrency and web3 space during the second presidential term, the emergence of FOMO trading, especially in the memecoin space, has significantly increased. The strategic launch of Melania Meme (MELANIA) and Official Trump (TRUMP) has attracted thousands of new cryptocurrency traders in the memecoin space in the past 48 hours.
Furthermore, crypto market pundits believe that the next bullish phase will happen in the near term, catalyzed by a clearer regulatory framework in the United States and rising adoption by institutional investors. As Coinspeaker explained, the inauguration of the first pro-crypto US president was a major contributor to the $2.2 billion cash inflows to the digital assets investment products last week.
MetaMask Co-founder Falls Victim of Fake Memecoin Promotion
Earlier on Monday, MetaMask announced that the Farcaster account of Dan Finlay, the platform’s co-founder, was hacked and used to promote a memecoin project. The Farcaster post on Findlay’s account showed a Fox-themed memecoin on the Solana (SOL) network dubbed Finn (FINN).
Although Finlay deleted the Farcaster post, the damage by the FINN memecoin had already been done to FOMO altcoin traders. However, MetaMask has cautioned meme traders to stay vigilant and most importantly perform their due diligence research to avoid getting rugged amid the ongoing mainstream adoption of digital assets.
This morning, our co-founder Dan Finlay's Farcaster account was compromised and used to promote a memecoin.
We are in touch with the Farcaster team to help investigate the incident.
Bad actors want to take advantage of your FOMO – please verify anything and everything, and…
— MetaMask 🦊🫰 (@MetaMask) January 20, 2025
According to on-chain data analysis provided by Dexscreener, the FINN memecoin had attracted nearly 4k holders at a fully diluted valuation of about $209k and a 24-hour average trading volume of about $38 million. The small-cap memecoin, with a pooled Solana (SOL) liquidity of about $40k, lost the majority of its value almost immediately after launch.
Bigger Picture
According to Ki Young Ju, the founder and CEO at CryptoQuant, the Trump administration will democratize the memecoin industry, especially those inspired by celebrities. For at least four years, Young noted that the creation of memecoins would lead the way in the cryptocurrency industry.
Already, billionaire Mark Cuban has signaled a potential memecoin creation following the resounding success of the Trump-backed token on the Solana network. In the long haul, a memecoin’s value will be derived from the community’s ability to make impactful contributions to society.
If meme coins are the way, maybe I’ll issue one. With a twist. Same terms as $TRUMP . 20% float. Same release schedule. One difference.
All the revenue from the sale of the coins go to the US Treasury. The wallet address will be published so everyone can track it.
If…
— Mark Cuban (@mcuban) January 20, 2025
Moreover, every crypto project has a memecoin nature with the possibility of a rug pull. However, memecoin projects that are backed by reputable companies, especially social media platforms, stand a better chance of surviving long-term prospects. On the other hand, celebrity memecoins tend to lose bullish traction as other hot and shiny projects emerge over time.
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