The rise and fall of memecoins tied to public figures have once again demonstrated the speculative nature of the cryptocurrency market.

Donald Trump’s TRUMP token and Melania Trump’s MELANIA token have seen staggering declines, shedding billions in market value in just weeks.

Data from CoinMarketCap shows that TRUMP has dropped by 75% from its peak, while MELANIA has plunged nearly 90% since its launch.

The hype around these tokens initially drove a surge in prices, but their rapid declines highlight the short-lived appeal of politically linked memecoins.

Despite their connection to the First Family, investors are learning that even the highest-profile endorsements cannot guarantee sustained value in the crypto space.

Early gains wiped out for Trump-linked tokens

The TRUMP token was launched on January 17 on the Solana blockchain, quickly gaining traction and reaching an all-time high of over $70.

Just two days later, Melania Trump introduced the MELANIA token, further fueling interest in meme coins tied to the Trumps.

At its peak, MELANIA had a market capitalisation of $2.1 billion, with its price soaring to $13.73.

But as the initial excitement faded, so did the value of both tokens. MELANIA now trades at around $1.50, reflecting a staggering 90% drop, while TRUMP’s losses have erased most of its gains.

Source: CoinMarketCap

This pattern is not unusual for memecoins, which often rely on virality rather than intrinsic value.

The speculative nature of these assets means they tend to experience rapid price swings, driven by social media hype rather than long-term fundamentals.

Trump’s influence on crypto fails to prevent downturn

Despite the attention that Trump’s involvement brought to memecoins, his political presence did not prevent the sharp decline in value.

Some crypto investors viewed his foray into digital assets as a sign of growing political support for the industry, while others saw it as an unnecessary distraction.

Unlike most memecoins, TRUMP was launched under CIC Digital LLC, a Trump-linked entity, and Fight Fight Fight LLC issued the MELANIA token.

This official connection to the president and first lady briefly helped drive demand, but even Trump’s ability to generate controversy and viral moments was not enough to sustain the rally.

Since its debut, TRUMP has likely generated at least $11.5 million in fees for entities associated with Trump, according to estimates from risk modelling firm Gauntlet.

Most investors who bought the token early saw little to no profit, with Bloomberg’s analysis indicating that the majority of wallets made no more than $13 in gains.

The price collapse of these tokens serves as a cautionary tale about the risks of investing in politically affiliated cryptocurrencies.

While high-profile figures can temporarily boost demand, the long-term viability of memecoins remains uncertain, particularly when their use case is unclear.

As the market moves on from the Trump-linked token frenzy, traders are left wondering whether politically charged memecoins will ever hold lasting value—or if they will remain fleeting trends driven by speculation.

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Asian stock markets are trading largely higher on Friday, reflecting mixed signals from Wall Street overnight.

Investors are staying cautious ahead of the release of the closely watched US jobs report, which is expected to provide guidance on the Federal Reserve’s interest rate outlook.

Traders are also awaiting US President Donald Trump’s potential announcements on trade curbs ahead of China’s tariff deadline next week.

Japan’s Nikkei halts winning streak

The Japanese stock market is trading lower on Friday, giving up gains from the previous session.

The Nikkei 225 Index has slipped 0.50% to 38,870.64 during the morning session, with losses across major sectors, including financials and exporters.

Market heavyweight SoftBank Group is down nearly 2%, while automakers Toyota and Honda have shed more than 2% and 1%, respectively.

In the tech sector, Tokyo Electron has declined nearly 4%, while Advantest has gained over 2%.

Economic data released on Friday showed household spending in Japan rose 2.3% month-on-month in December, exceeding expectations of a 0.5% decline and building on November’s 0.4% increase.

Hong Kong and China stocks soar higher

Hong Kong’s Hang Seng Index has advanced over 1% to 21,189.19 in morning trade, driven by gains in technology shares.

The Hang Seng Tech Index is up close to 3%, with companies such as Lenovo, Xiaomi, and Geely Automobile among the top gainers, rising 8%, 5.6%, and 3%, respectively.

Electric vehicle makers BYD and Li Auto have also posted strong gains, climbing 5% and 6%.

Mainland Chinese markets are trading higher, with the CSI 300 Index and Shanghai Composite Index both strongly over 1%.

Analysts from HSBC noted that China’s stock market has yet to fully reflect its increasing innovation capabilities.

They expect this recognition to drive valuation gains and attract foreign fund inflows, narrowing the gap with other emerging markets.

Other regional markets

The Australian stock market is trading slightly lower on Friday in a choppy session, snapping a three-day winning streak.

The S&P/ASX 200 Index is down 0.070% at 8,514.70, despite trading briefly in positive territory earlier.

South Korean shares declined on Friday. However, the market was on track to end the week with overall gains.

The benchmark KOSPI fell 4.21 points, or 0.37%, to 2,527.41. Despite the dip, the index was up 0.6% for the week, marking its largest weekly gain since early January.

Wall Street jittery on Thursday

US stocks exhibited a lack of clear direction on Thursday, with the major averages fluctuating around the unchanged line before closing mixed.

The Nasdaq and the S&P 500 managed to end the day with gains, marking their third consecutive session of growth.

The Nasdaq rose 99.66 points, or 0.5%, to close at 19,791.99, while the S&P 500 advanced 22.09 points, or 0.4%, to 6,083.57. However, the Dow slipped 125.65 points, or 0.3%, to finish at 44,747.63.

The indecisive trading came as investors appeared hesitant to make bold moves ahead of the Labor Department’s monthly jobs report, due on Friday.

The report is expected to reveal an increase of 170,000 jobs in January, following a gain of 256,000 jobs in December, and could influence the trajectory of interest rates.

Aseparate Labor Department report released Thursday showed an unexpected rise in weekly jobless claims.

Initial unemployment claims increased by 11,000 to 219,000 for the week ending February 1, compared to the previous week’s revised figure of 208,000.

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Hong Kong’s postal service has extended its suspension on shipping items containing goods to the United States, even after the US postal administration reversed its temporary ban on parcels from China.

The ongoing restriction highlights escalating trade tensions between the two economies, with Hongkong Post citing the need for further clarification on new tariff rules before resuming deliveries.

The dispute follows Washington’s decision to impose an additional 10% tariff on Chinese imports, eliminating a previous exemption that allowed small-value shipments to enter duty-free.

The US initially halted all parcel shipments from China, including those from Hong Kong, before abruptly reversing course.

Despite this change, Hongkong Post has maintained its suspension, citing unresolved issues related to duty collection and regulatory compliance.

E-commerce faces cost pressures

The sudden policy changes have introduced new challenges for cross-border e-commerce platforms reliant on cost-effective shipping from China.

Companies like Shein and Temu, which have thrived by leveraging direct-to-consumer shipping routes under the former duty-free threshold of $800, now face an unpredictable regulatory environment.

With nearly $427 billion worth of Chinese goods entering the US in 2023, changes in tariff policies could significantly impact consumer prices, particularly in categories such as electronics, apparel, and household items.

Cheap and fast shipping has been a major driver for platforms catering to budget-conscious American consumers, making any additional costs from tariffs a potential threat to their business models.

Retail analysts note that higher shipping costs and import duties could force e-commerce platforms to reconsider their fulfilment strategies.

Some companies may seek alternative distribution channels, such as warehousing goods in intermediary markets, to bypass direct shipments from China.

Others may adjust pricing or offer bulk shipping options to offset increased costs.

Hong Kong caught in the middle

The suspension of parcel shipments from Hongkong Post underscores the broader economic strain caused by geopolitical tensions between the US and China.

While Hong Kong maintains a separate trade status under its Basic Law, Washington no longer grants the city preferential treatment in trade matters.

The removal of its special customs status has exposed Hong Kong exports to the same tariffs imposed on mainland Chinese goods, further complicating the city’s role in global trade.

The Hong Kong government has strongly criticised the US tariffs, urging Washington to “rectify its wrongdoing” and reconsider its trade policies.

The city’s authorities argue that the new duties unfairly penalise Hong Kong businesses, disrupting supply chains and creating unnecessary trade barriers.

Logistics industry in limbo

Logistics firms and postal services operating in the region face increasing uncertainty as they attempt to navigate shifting US import policies.

While the US Postal Administration has stated that it will coordinate with Customs and Border Protection to ensure proper tariff collection, businesses remain concerned about potential delays and regulatory confusion.

For now, Hongkong Post has yet to announce when it will lift the suspension, leaving customers and businesses in limbo.

The ongoing uncertainty is particularly problematic for companies relying on the city as a key logistics hub for shipments to North America.

Industry experts caution that further trade restrictions or inconsistent policy enforcement could lead to disruptions across multiple sectors.

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Tesla (NASDAQ: TSLA) has raised the prices of its Model X vehicles in the United States by $5,000, marking the latest adjustment in its fluctuating pricing strategy.

The base Model X all-wheel drive now costs $84,990, while the high-performance Plaid variant has risen to $99,990.

This follows a similar $5,000 price increase for the Model S in December 2023 and a broader hike across all models in Canada from 1 February 2024.

The increase comes as Tesla navigates an evolving electric vehicle (EV) landscape characterised by slowing demand, intensifying competition, and pressure on profit margins.

Unlike previous price reductions, which were aimed at maintaining market share, this latest move suggests a strategic recalibration as Tesla balances affordability with profitability.

Tesla Model X price hike

Tesla’s decision to raise prices comes amid a broader industry shift where automakers are struggling to maintain EV demand.

The company previously engaged in aggressive price cuts throughout 2023, slashing the cost of its vehicles by as much as 25% to counter slowing sales.

Even in 2024, the company cut prices to stay competitive. In April last year, the Elon Musk-led company cut prices is the US, China, and German markets.

These reductions impacted Tesla’s profit margins, prompting concerns among investors about long-term sustainability.

The latest price hike suggests that Tesla is adjusting its pricing strategy to regain lost margins while gauging market elasticity.

The Model X, Tesla’s flagship SUV, is positioned as a premium offering, giving the company more flexibility to increase prices without significantly dampening demand.

Given that luxury EV buyers are less price-sensitive compared to those in the mass-market segment, Tesla may be testing the extent to which it can offset lower sales volumes with higher per-unit profits.

EV market headwinds complicate Tesla’s strategy

Tesla’s price increase also coincides with challenges facing the broader EV sector.

While the company has benefited from declining raw material costs—especially in lithium and other battery components—demand for EVs has softened in key markets, including the US and China.

Rival automakers such as Ford, General Motors, and Rivian have scaled back their EV production targets, citing slower-than-expected consumer adoption and infrastructure limitations.

Tesla itself has tempered its expectations for growth, with CEO Elon Musk warning of potential production slowdowns in 2024 due to economic uncertainties.

In addition, Tesla’s competitive positioning has been under pressure from emerging Chinese EV manufacturers such as BYD, which recently overtook Tesla in global EV sales.

This has forced the company to make strategic adjustments, including focusing on cost efficiencies and exploring new revenue streams such as full self-driving (FSD) subscriptions.

What’s next for Tesla’s pricing strategy?

Tesla’s history of frequent price adjustments suggests that the company remains highly responsive to market conditions. While recent price hikes indicate an attempt to improve margins, further adjustments could be on the horizon, particularly if demand continues to fluctuate.

In the past, Tesla has used price cuts as a lever to stimulate sales, especially during weaker economic periods.

However, with ongoing investments in new manufacturing capabilities—such as the Gigafactory expansion in Mexico—Tesla may seek to stabilise pricing and shift towards long-term cost reductions rather than aggressive discounting.

For now, Tesla’s Model X buyers in the US will have to pay more, but whether this signals a broader shift in Tesla’s pricing strategy remains to be seen.

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The FTSE 100 index continued its bullish momentum this week as it hovered near its all-time of £8,775. It has soared by about 14% in the last 12 months and 6.50% this year. It is still lagging behind popular European indices like the DAX and CAC 40 indices. Let’s explore some of the top FTSE 100 shares to watch next week.

Bank of England decision

The FTSE 100 index rallied after the Bank of England delivered its first interest rate decision of the year. Unlike the Federal Reserve, the bank slashed rates by 0.25% and hinted that it would maintain a dovish tone in the coming meetings.

The bank is cutting rates because UK’s inflation has moved near its 2% target, while the economy has slowed substantially. Foreign Direct Investment to the UK has fallen, while the manufacturing sector has remained on edge.

Therefore, the BoE hopes that rate cuts will boost the economy by making it easier for people and companies to borrow cash. 

Interest rates have started to move downward in the past few months. The 10-year yield has dropped from 4.91% in January to below 4.50%. Similarly, the five-year yield has moved from 4.62% to 4.2%.

Top FTSE 100 shares to watch

There will be some big FTSE 100 companies in the spotlight next week as they release their financial results. 

Barratt Redrow will be the first major FTSE 100 stock to watch as it publishes its interim results for the period. This is a notable company formed by Barratt’s £2.3 billion acquisition of Redrow in 2024. The results will provide more color about the state of the housing market in the UK. 

Barclays, one of the biggest British banks, will release its final results for 2024 on Thursday. These numbers come at a time when the Barclays share price is firing on all cylinders. It has risen in the last five consecutive months and is now trading at the highest level since November 2007. 

Barclays stock is up by almost 400% from its lowest level in 2020. This growth is because of the ongoing health of its consumer banking division and the potential recovery of its investment banking division.

British American Tobacco is the other top FTSE 100 stock to watch as it publishes its financial results on Thursday. Like Barclays, the BAT stock price has soared to 3,330p, and is sitting at its all-time high. This performance is in line with that of other tobacco stocks. 

Consumer goods companies like Coca-Cola and Unilever and banking giant Standard Chartered will be the other top FTSE 100 firms to watch next week. The other top global companies to watch will be McDonald’s, Shopify, Applied Materials, and Cisco. While these are American companies, they have an impact on their global counterparts.

FTSE 100 index analysis

FTSE index chart by TradingView

The weekly chart shows that the FTSE 100 index has been in a strong bull run in the past few months. It recently crossed the important resistance level at £8,475, its highest level in May last year. This price was also the upper side of the ascending triangle pattern. 

The FTSE 100 index has also remained above the 50-week moving average. Also, the Average Directional Index (ADX) has pointed upwards, a sign that the trend is strong. Therefore, the FTSE 100 index will likely continue rising as bulls target the next key resistance level at £9,000. 

A drop below the crucial support at £8,476 will invalidate the bullish view and point to more downside in the near term.

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