Amid the inauguration, Donald Trump and his wife, Melania Trump, launched their own memecoin. It took TRUMP and Melania coins less than a day to break into the top capitalization. Amid the launch of Donald and Melania’s coins, members of the crypto community suggested that other members of the politician’s family would also create their own cryptocurrencies. First in line was the president’s daughter, Ivanka Trump.
Participants in the crypto community did not wait for Ivanka to create a memcoin, and launched the coin themselves. Unfortunately, investing in such tokens comes with great risks. We’ll tell you what’s wrong with the Ivanka token.
In Trump’s footsteps
Donald Trump is no stranger to the crypto industry. He began his journey by criticizing Bitcoin, but later softened his attitude towards digital assets. Several NFT collections have been released under his name. Now Trump’s portfolio of digital assets also includes a cryptocurrency – Official Trump (TRUMP). Before the coin appeared, there were many Trump tokens on the market, behind which there were developers unrelated to the politician – for example, MAGA (TRUMP). With the advent of the official memecoin of the politician, which he announced on his social networks, alternative coins lost their weight.
A similar situation happened with Melania Trump. She also released her own cryptocurrency, Melania Meme (MELANIA), which “absorbed” part of the liquidity of peers that are not directly related to the First Lady.
Against the backdrop of the launch of TRUMP and MELANIA, a joke appeared in the crypto community that those who had not managed to earn money on the tokens of Donald and Melania would be able to make up for lost time with the help of memcoins of other members of the politician’s family.
Since there is some truth to every joke, memecoins in honor of other members of the Trump family soon began to appear on the market. The coin that generated the most buzz was the one associated with his daughter, Ivanka Trump.
What’s wrong with Ivanka
The $IVANKA token went viral on the network. The full name of the coin, Official Ivanka, hints that it is the official token of Ivanka Trump. Actually this is not true. There is no information on Ivanka’s social networks about plans to launch a cryptocurrency.
At the start of trading, IVANKA soared to $0.028, but then a collapse followed. As of the time of writing the review, the coin is trading 93% cheaper than the maximum. According to geckoterminal, IVANKA has over 12.3 thousand holders. The market capitalization of the coin is $2.7 million.
The behavior of the cryptocurrency indicates a classic pump and dump scam. First, the creators of the project attracted the attention of investors to it in order to bring the price of the asset to a peak through their purchases, and then they began to sell their IVANKA, thereby collapsing the coin’s rate. As a result, ordinary investors could lose all their money.
Since a pump and dump scheme has already been carried out with IVANKA, the likelihood of the cryptocurrency growing again is in doubt. Most likely, those interested have already earned enough from the coin. In addition, investors who witnessed a token collapse are unlikely to show interest in it. Therefore, IVANKA is most likely doomed to further stagnation followed by oblivion.
We remind you that investing in memcoins always involves high risks. The value of such assets is not backed up by anything. If in the case of TRUMP and MELANIA, coins work like shares – their behavior reflects the actions of politicians who will be in the arena for many years to come, then memcoins created by unknown groups depend solely on supply and demand at the moment.
If Ivanka Trump follows her father in releasing an official memecoin, the new cryptocurrency will most likely destroy the available alternatives. Therefore, investing in coins issued by unknown development teams and tied to the identities of popular people is a double risk.
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Source: Cryptocurrency
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