In a shocking revelation, a recent investigation has uncovered that a group of crypto traders made nearly $100 million by purchasing the MELANIA memetoken just minutes before its official launch. This controversial incident has raised questions about transparency and fairness in the crypto market, particularly with memecoins linked to prominent public figures like the Trumps.
MELANIA Token Launch and Controversy
The MELANIA token made its debut on January 19, 2025, merely two days after the launch of the Official Trump token and just one day before Donald Trump’s inauguration. Both tokens are Solana-based memecoins with minimal utility, yet their association with the Trump name sparked significant attention.
The launch announcement came through Melania Trump’s post on Truth Social. However, blockchain data analysis revealed that two and a half minutes before this announcement, a group of 24 wallets had already received $2.6 million worth of $MELANIA tokens, acquiring over 33% of the total supply. The sudden and substantial purchase raised eyebrows, given that the tokens were bought at a significantly lower price just moments before the public announcement.
Analyzing the Financial Impact
After the public became aware of the launch, the price of $MELANIA surged rapidly. Within 12 hours, those who had bought the tokens beforehand sold around 81% of their holdings, capitalizing on the price hike. One account, in particular, made an astonishing $39 million by investing $681,000 just a minute before the official launch announcement. Over the next three days, this single investor reportedly made an additional $4.4 million.
The Financial Times reported that these pre-launch acquisitions did not originate from the MELANIA development team, whose fixed profits stood at approximately $64.7 million. Despite the appearance of unfair trading practices, experts point out that since memecoins do not qualify as securities under U.S. law, no legal violations occurred.
The Team Behind MELANIA: Controversies and Connections
MELANIA memecoin is managed by MKT World LLC, a Florida-based company established by Melania Trump in 2021. The team officially owns 30% of the token’s supply, with the remaining distribution divided among the treasury, community, and public. However, suspicions arose when blockchain data linked the MELANIA team to sniping activities, a practice where automated tools are used to purchase new tokens at the earliest possible moment.
One wallet associated with the MELANIA token was identified as having earned $2.4 million from sniping the First Lady-themed memecoin. The same address was also linked to other sniping operations, including the controversial $LIBRA token. Analysts highlighted potential connections to pump-and-dump schemes, raising concerns about the ethics of these trading practices.
Comparing $MELANIA and $TRUMP Tokens
The MELANIA token scandal has drawn comparisons to the Official Trump memecoin, which was launched separately and generated around $350 million through token sales and fees. Unlike MELANIA, the $TRUMP token saw occasional price spikes, increasing the team’s holdings. On the other hand, MELANIA’s price has remained significantly lower since its brief peak on the first day of trading.
Data from Chainalysis revealed that 58 wallets each made $10 million from $TRUMP investments, with a combined profit of $1.1 billion. In contrast, smaller investors largely incurred losses, as around 764,000 wallets with minor $TRUMP holdings faced negative returns.
A Need for Greater Transparency
The intertwining of politics, public figures, and memecoins continues to spark debates within the crypto community. While technically legal, the insider-like trading patterns associated with the MELANIA token highlight the urgent need for improved transparency and regulations to protect ordinary investors. Whether these controversial tokens will continue to generate profit or face further scrutiny remains uncertain, but they undoubtedly represent a cautionary tale about the speculative nature of memecoins.
