American Coin rallied amid rumors that Donald Trump might launch a meme coin themed around the United States.
After trading relatively flat over the past three months, Solana-based meme coin named ‘American Coin’ with the ticker ‘USA’ formed a God candle on Jan. 19 as it rose to $0.0000254, up 405% from an intraday low of $0.00000503 while its market cap surged to nearly $300 million at that time.
American Coin’s (USA) dramatic rally came in a high-volume trading environment, with its daily trading volume soaring by over 550% to hover around $300 million. The surge in activity fueled speculation-driven gains, pushing the meme coin to trend on platforms like CoinGecko.
While the meme coin project has no affiliation with the country USA, the majority of gains witnessed on Sunday came after community members reported that incoming U.S. President Donald Trump is potentially considering launching a USA meme coin possibly by the end of this week.
Notably, USA coin, which shares a similar name, had already been in the market prior to these rumors. The speculation surrounding a presidential link fueled confusion and boosted interest in the token despite it not being directly connected to any official initiative or the potential launch of a new meme coin.
However, the gains were short-lived, and the token crashed as Eric Trump, the upcoming President’s second eldest son, debunked the rumors, clarifying that the USA coin had nothing to do with the Trump family.
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USA crashed over 62% soon after, and almost all of yesterday’s gains were wiped off by Jan. 20. When writing, the altcoin was trading down at $0.00000964 while its market cap fell back under $129 million.
Such occurrences are common in hype-driven meme coins, and the phenomenon was also observed in recent Trump family-launched meme coins such as the Official Trump (TRUMP) token and Melania Meme (MELANIA).
On Jan. 17, Trump unveiled the TRUMP meme coin, which subsequently surged over 1,000% within the next day, bringing its market cap to over $14.5 billion. Similarly, MELANIA also showcased increased volatility after its launch, initially surging nearly 75% to an all-time high of $13.04 within two hours. The price then dropped to $7.43 before rebounding above $13 and eventually stabilizing at over $11.
These meme coins were trading 21% and 10% lower, respectively, than their post-launch highs when writing.
Read more: MELANIA coin price spikes over 75% after Binance boost
