President Donald Trump recently said that he expects the U.S. to be able to reach a trade agreement with China in the near future, and the news has been a significant bullish catalyst for multiple sectors of the financial world. In addition to lifting valuations for stocks and the broader cryptocurrency market, news of a potential U.S.-China trade deal has powered big gains for the Official Trump (TRUMP 6.83%) and Melania Meme (MELANIA 12.23%) meme coins.
Thanks to the trade deal catalyst, Official Trump is up roughly 18% over the last week of trading as of this writing. Meanwhile, Melania Meme is up roughly 19% over the last week but is actually up approximately 25% over the last day of trading. Is it possible that the rally for these high-profile meme coins is just starting to heat up?
Image source: Official White House Flickr account; photo by Andrea Hanks.
Are Official Trump and Melania Meme good buys right now?
The Official Trump cryptocurrency was launched shortly before President Trump's inauguration this year and was followed by the launch of the Melania Meme token soon after. The coin launches and promotions marked the first time that personally branded cryptocurrencies were endorsed by a U.S. president and first lady.
The Official Trump and Melania Meme tokens saw big valuation gains immediately following their launches but then mostly saw steep drawdowns in subsequent trading. Despite recent pops, the Official Trump token is still down roughly 91% from the high of $75.35 per token it reached shortly after its debut.
CRYPTO: TRUMP
Key Data Points
Like most meme coins, Official Trump and Melania Meme are backed by little in the way of fundamentals. On the other hand, the tokens have clear connections to two highly visible and influential world figures. This characteristic gives the tokens some meaningful brand strength, and both Official Trump and Melania Meme have sometimes seen pricing gains in conjunction with major political events.
Along those lines, it wouldn't be unreasonable to expect that each of these meme coins could continue to see valuation pops when positive news items connected to Trump's second term as president hit the wire. Additionally, President Trump has been making some big moves to support the growth of the U.S. crypto industry -- appointing crypto supporters to key government positions, backing legislation to clarify and streamline regulations shaping the market, and initiating the creation of a U.S. digital assets reserve.
While connections to the sitting U.S. president and first lady give Official Trump and Melania Meme some strengths, these distinctive characteristics also haven't translated to sustained gains in the time since the tokens have launched. Both meme coins have notably struggled since their market debuts despite strong bullish momentum for the broader crypto market. So while it's certainly possible that valuations for these cryptocurrencies could march well above their current levels, there's currently not much evidence that they have what it takes to be lasting winners.
