Solana, TRUMP, MELANIA Memecoins Tumble as Donald Trump’s Inauguration Brings $700M Crypto Liquidations
Crypto markets saw wild price swings on Monday during Donald Trump’s inauguration ceremony as heightened excitement turned to disappointment after he refused to mention crypto in his first speech.
The benchmark of the broad crypto market CoinDesk Index 20 fell more than 5% during the ceremony, while bitcoin (BTC) dropped to $101,000 from $106,000 before stabilizing around $103,000. Layer-1 network Solana (SOL), which was at the center of the weekend crypto frenzy of Trump-related memecoins, which led to losses among altcoin majors, is down nearly 10% from its recent lifetime record.
TRUMP, to Donald Trump official memecoin which launched Friday in Solana, down 30% from $50 on Trump’s speech. It later recovered some of its losses but is still down about 20% from its session high. MELANIA — the token named for First Lady Melanie Trump and launched a day after TRUMP — fell as much as 46% before paring some of the losses.
Read more: Bitcoin Fades From Highs After No Crypto Mention During Trump’s Inauguration Speech
Volatility also flushed leveraged crypto trading positions in droves, liquidating more than $700 million of derivatives across all digital assets on exchanges through Monday, CoinGlass data shows. Nearly $500 million worth of liquidated positions have long been betting on rising prices.
Including the overnight selloff before the inauguration brings total liquidation to more than $1.2 billion in the past 24 hours, marking the largest leveraged wipeout this year.
Anticipation for Trump’s presidency looms large in the crypto industry, which is hoping for friendlier policies toward digital assets after years of regulatory uncertainty and clampdown. However, the launch of Trump-related meme tokens just days before he entered office unleashed a speculative frenzy on crypto trading platforms and get bored some prominent figures inside and outside the industry.
“It’s absolutely crazy that he would do this,” Nic Carter, founding partner at crypto investment firm Castle Island Ventures, Politico said. “They are plumbing new depths of stupidity with the memecoin launch.”
Congresswoman Maxine Waters, the top Democrat on the House Financial Services Committee, is the latest to denounce the action.
“This meme coin represents the worst of crypto and shows why many regulators, advocates, and policymakers have long been concerned,” he said in a statement on Monday. “These actions by President Trump will further damage the crypto industry, which has long fought for legitimacy and a level playing field with other financial institutions.”
