The TRUMP and MELANIA memecoins have witnessed a significant slump, with their combined market cap dropping 56% to $10.9 billion within 24 hours. The rise of these tokens correlated with a capital outflow from established memecoins such as DOGE, SHIB, and PEPE. Started during President-elect Donald Trump's inauguration celebration, the TRUMP token initially peaked at over $17 billion, surpassing SHIB and AVAX. However, it became evident that the funds fueling TRUMP came primarily from reallocation rather than new investments. Following the launch of MELANIA, TRUMP's value plummeted by 58%. Retail investors are particularly vulnerable, facing steep losses, as many tokens are purely speculative without inherent utility. Additionally, copycat tokens have emerged, causing further concerns. Prominent figures warn that these investments are rife with risks, and the volatility of memecoins might lead to severe financial losses for many who enter the market without caution.

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