The cryptocurrency market is notorious for its volatility, opportunism, and the occasional scandal. The recent launch of Melania Trump’s memecoin, dubbed $MELANIA, has unveiled a whirlwind of trading activity that not only sparked interest but also raised questions about ethical practices in digital asset trading.
According to a report from the Financial Times, a group of savvy crypto traders managed to acquire $MELANIA tokens worth $2.6 million mere minutes before Melania Trump publicly announced the launch of the coin on social media. This strategic timing proved to be immensely profitable, as the token’s price surged from approximately $2.00 to an astonishing $12.95, marking a staggering increase of 550%. In less than 12 hours, these traders realized gains close to $100 million through their pre-launch purchases.
The report detailed that 24 trading accounts collectively bought up 16.7 million of the total 200 million $MELANIA tokens available during the launch period, with further trading activity following the announcement. Within just 42 seconds of the coin’s launch, an additional 22 accounts purchased around $900,000 worth of tokens.
This launch coincided with a separate announcement from then-president-elect Donald Trump regarding his own cryptocurrency initiative, the TRUMP coin. Both memecoins have since come under scrutiny from lawmakers who allege potential conflicts of interest and corruption, citing concerns regarding bribery and undue foreign influence.
Increasing Scrutiny and Calls for Accountability
Lawmakers’ criticisms appear to be predominantly directed at the president rather than the First Lady. Following reports that some of the primary holders of the TRUMP token were being offered exclusive access to a private dinner with Donald Trump, a senator raised alarms about the ethical implications, even calling for Trump’s impeachment.
As of the latest updates, both the $MELANIA and TRUMP tokens have seen a significant drop in value since their initial peaks; the MELANIA token has plummeted to around $0.31. The TRUMP token, which experienced a temporary surge following the planned dinner announcement, has since settled at $10.90.
Further complicating the narrative, two companies closely associated with Trump reportedly control approximately 80% of the TRUMP token supply. Although many tokens remain locked and will only be released over the next three years, critics warn that insiders could potentially execute a ‘rug pull’ that might defraud innocent investors.
In conclusion, the dramatic rise and subsequent fall of Melania Trump’s memecoin serves as a cautionary tale within the cryptocurrency realm. It brings to the forefront questions about the ethics of trading based on insider knowledge and highlights the need for more robust regulations within this burgeoning market.
