The launch of memecoins by the Trump family is being hailed as a significant moment for the cryptocurrency industry, with analysts suggesting it could pave the way for increased retail interest in high-risk digital assets.

The Trump family introduced the Official Trump (TRUMP) memecoin on 18 January, followed by the Official Melania (MELANIA) token on 19 January. Both tokens, launched on the Solana network, coincided with President-elect Donald Trump’s inauguration on 20 January.

A Revival of the Memecoin Craze

Anndy Lian, blockchain expert and author, called the memecoin launches a “pivotal moment” for the crypto sector. “This is not just another token launch,” Lian told Cointelegraph. “It’s backed by coordinated financial groups and celebrity endorsements that could drive market caps into billions.” He likened the moment to the resurgence of the ICO craze, amplified by greater market capital and global influence.

However, the enthusiasm wasn’t without volatility. The TRUMP token’s market cap peaked at $14.9 billion on 19 January but plummeted 27% within hours to $10.8 billion, according to CoinMarketCap data. The token price also dropped 38%, from $74.6 to $45.9, after MELANIA launched.

Experts Predict a Shift to Altcoins

The memecoin launches could signal a broader rotation of investor interest towards altcoins, cryptocurrencies excluding Bitcoin and Ethereum, according to Valentin Fournier of Blockhead Research Network.

In a research note, Fournier suggested this shift could lead to altcoins outperforming major assets in the coming months. “Such moves indicate a potential rotation of capital from major assets to smaller, high-risk ones,” he stated.

Ki Young Ju, CEO of CryptoQuant, believes this is a turning point for the industry. “The reality of financial markets behaving like memes isn’t going away,” Ju wrote on X (formerly Twitter). He added that the decentralised nature of crypto could lead to the rise of even more meme-driven assets.

Ju also highlighted how the Trump administration’s embrace of free markets, rather than regulated ones, could encourage further experimentation with meme-driven communities over the next four years.

Criticism and Concerns Over Market Impact

Despite the enthusiasm, sceptics have raised concerns about the rapid fluctuations and potential risks associated with memecoin investing. Some critics accused Trump’s team of orchestrating a “pump and dump” scheme, with back-to-back launches inflating the net worth of the president-elect and first lady.

The TRUMP token saw a staggering $5 billion wiped from its market cap within 40 minutes of MELANIA’s release. While retail investors flocked to the tokens initially, the sharp declines highlight the high-risk nature of such assets.

The Future of Memecoins

Industry insiders see the Trump tokens as setting a precedent for future political memecoins, sparking debates about their legitimacy and impact on the crypto ecosystem. Whether they usher in sustained growth for altcoins or exacerbate market volatility remains to be seen.

For now, the Trump family’s foray into the crypto space has captured global attention, underlining the growing influence of celebrity-backed digital assets in reshaping investor behaviour.