Anonymous traders capitalized on Melania Trump’s $MELANIA memecoin announcement, generating $99.6 million in profits within hours on January 19, 2025.
The incident raises questions of market integrity and transparency, prompting political backlash and regulatory scrutiny on cryptos linked to public figures.
The launch of the Melania Trump memecoin, $MELANIA, has led to significant initial market profits, which were quickly followed by a sharp decline, resulting in widespread ethical and financial scrutiny.
Amidst rapidly fluctuating market conditions and ethical debates, the $MELANIA memecoin’s journey spotlights critical considerations in cryptocurrency’s speculative environment.
Pre-Announcement Trades Reach $2.6 Million in $MELANIA
Anonymous traders used 24 wallets to purchase $2.6 million worth of $MELANIA memecoin just before Melania Trump’s announcement. The coin saw a quick price surge followed by a sharp decline.
The memecoin was announced by Melania Trump on Truth Social before her husband, President Trump, took office. Anonymous traders capitalized on the announcement, later earning significant profits through quick trades.
81% of Holdings Sold Amid Value Collapse
Anonymous wallets sold 81% of holdings within hours, profiting massively before a collapse in value. The White House has not issued a response regarding the ethical questions raised by these transactions.
Senator Chris Murphy criticized the memecoin’s ethics, describing it as potentially the most unethical act by a U.S. president:
Trump’s memecoin is the most unethical, the most corrupt thing a president of the United States has ever done.Regulatory responses are yet to address these coins’ governance or ethical concerns.
Memecoin Cycles Mirror Historical Trends
Memecoins like $TRUMP have followed similar speculative cycles, experiencing rapid growth followed by steep declines. The pattern suggests temporary interest without lasting market impact.
Experts note potential regulatory implications for future memecoin launches. The MEME Act proposed could prevent U.S. officials from engaging in similar coin issuances, highlighting long-term SEC governance challenges.
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