Deriv launches $TRUMP and MELANIA: The crypto coins capturing headlines post Trump's inauguration

Deriv has made the much hyped TRU and MLN crypto coins available for trading, just days after former President Donald Trump's second inauguration. Named after President Donald Trump and First Lady Melania Trump, these coins are part of the broader wave of Trump-branded crypto ventures that have captured attention and pulled in traders.

A surge fueled by sheer hype and anticipation

Trump has been vocal about his commitment to promoting a "golden age" for digital assets, and these meme-inspired tokens have become part of that narrative. Initially, both coins saw a sharp increase in value, drawing attention from investors eager to capitalize on the excitement. With social media buzz and heightened media coverage, the market responded, pushing the coins to impressive highs. These gains, while not unprecedented in the meme coin world, were certainly noteworthy.

However, as with any high-profile launch, volatility quickly followed. The value of TRU and MLN experienced fluctuations typical of meme coins. While the coins have not crashed completely, some analysts have expressed caution, warning potential investors about the risks of buying into such hype-driven assets.

Analyst caution and market volatility

While the initial excitement was undeniable, analysts have been quick to point out the risks associated with meme coins like TRU and MLN. These coins, while potentially profitable in the short term, do not carry the same underlying value or investment potential as more established cryptocurrencies. Critics argue that the volatility and speculative nature of meme coins could lead to significant losses for those who do not fully understand the risks involved.

Notably, TRU’s price has already dropped by about 50% from its peak, and MLN has also seen its value fluctuate. Many analysts are cautioning that the hype surrounding these coins may not be sustainable in the long run, and investors should be mindful of the potential for sudden price corrections.

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The non-crypto crowd joins the frenzy

Despite the cautionary language from analysts, one of the most interesting aspects of the TRU and MLN launch is the influx of new, non-crypto people into the space according to Axios. The meme coin phenomenon has long been known for attracting a diverse range of investors, and the launch of TRU and MLN is no exception. Many of the early buyers are newcomers to the crypto world, drawn in by the excitement surrounding these new coins.

In fact, data from blockchain analytics firm Chainalysis shows that a significant portion of the wallets holding TRU and MLN coins belong to small investors, many of whom are engaging with cryptocurrency for the first time. These buyers are likely motivated by the potential for short-term gains, and their interest could represent a shift in how people view digital assets.

For those new to the space, the initial success of TRU and MLN may offer a glimpse into the broader potential of cryptocurrencies. The ease of entry and the prospect of financial rewards could encourage further exploration into other digital assets, even beyond meme coins.

Potential benefits for curious traders

While the cautionary language around TRU and MLN is well-founded, there are also significant potential benefits for investors, especially those new to the crypto space. For many non-crypto individuals, the opportunity to make money from these coins, even if it’s in small amounts, has been a gateway to understanding the world of digital assets.

The launch of TRU and MLN has significantly raised awareness of cryptocurrency among the general public. Sarah Jones, a well-known crypto enthusiast and educator, noted that even individuals who previously showed little interest in digital assets are now starting to explore the space. 

Moreover, the ability to make small profits, with 77% of TRU and MLN holders having earned a small amount, according to Chainalysis-demonstrates that even in a volatile market, there is room for newcomers to experience some success.

While not every buyer will walk away with gains, the education and exposure to cryptocurrency can be a valuable stepping stone for those looking for trading opportunities.

As for now, you can get involved and speculate on the price of these two assets with a Deriv MT5 account or a Deriv X account. 

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