Melania Trump memecoin plunges 73% in value three days after launch

The first lady launched her Melania Meme (MELANIA) on Sunday a day after Donald Trump launched his own memecoin.

First lady Melania Trump launched her Melania Meme (MELANIA) on Sunday, a day after Donald Trump unveiled his own memecoin.

Less than 12 hours after launching, MELANIA was up 31.5% and at one point hit more than $13. But by Wednesday afternoon, its value had dropped to $3.63 — a 73% decrease from its top price.

The cryptocurrencies launched by the Trumps have drawn the ire of some digital currency advocates.

Such cryptocurrency has no economic or transactional utility and is considered a purely speculative asset with buyers essentially wagering on its value.

Websites for both coins include disclaimers stating that they are not investment opportunities or securities.

Critics within the crypto industry say the Trumps' ventures damage the sector's reputation as it recovers from recent scandals and bankruptcies.

“These coins are not backed by anything tangible and can quickly lose their value,” said Kevin Boon, president of Mysten Labs, adding that politically linked meme coins "are dangerous because they cause polarization; people can lose a lot of money."

However, some industry figures defend celebrity meme coins as harmless entertainment.

The Associated Press contributed to this report.