There May Be a Second MELANIA Token — Balaji Srinivasan Says
Balaji Srinivasan, tech founder, and former CTO of Coinbase, commented on the TRUMP and Melania memecoins and discussed how the crypto sector, particularly the memecoin market, may grow under Trump.
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Ahead of his inauguration, Trump shook the crypto industry once again by launching his Official Trump (TRUMP) memecoin.
In just two days, TRUMP surged by 875%, with a market cap of over $27 billion. Following this, First Lady Melania Trump launched her own cryptocurrency, MELANIA, which led to a decline in TRUMP's market cap and high volatility.
The launch of these memecoins sparked controversy in the crypto space, raising questions about whether the soon-to-be president will continue launching cryptocurrencies.
Balaji posted an extensive thread on X about the situation.
“A memecoin is a zero-sum lottery,” he wrote, adding that there’s no wealth creation, and those who buy last lose everything.
However, after MELANIA’s launch, he expressed concerns that Trump might launch a third memecoin, further crashing the value.
Initially, Balaji analyzed situations where the TRUMP memecoin could be useful. He pointed out that the launch of the TRUMP memecoin means the majority of the U.S. president’s net worth is now tied up in memecoins.
According to him, thousands of personal memecoins could flood the market, as influencers, politicians, and celebrities worldwide watch the phenomenon. In this scenario, buyers would be aware that they’re purchasing the potential future brand value of the meme.
Ultimately, this largely depends on the performance of the TRUMP memecoin.
Data from Solscan shows that there are more than 850,900 TRUMP holders at the moment of writing. Balaji mentioned that potentially the memecoin can get holders access to offline community events or set up token-gated access.
Also, thanks to the onchain nature of memecoins, there’s a public list of all TRUMP holders, and can be used as onchain email list for cases like airdrops or political messages.
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