Melania Trump announced the launch of her MEME token on May 5, 2025, resulting in insider profits of nearly $100 million and significant market volatility.
The launch sparked ethical debates and network congestion while showcasing vulnerabilities in meme token regulation and high-profile branding strategies.
Insiders Secure $2.6 Million Pre-Launch Purchase Profits
Melania Trump announced her MEME token on X and Truth Social, impacting trading markets. The token price surged almost 550%, illustrating the high volatility around politically branded tokens.
On-chain data revealed insider activity, purchasing $2.6 million in tokens shortly before the public launch. Donald Trump’s earlier $TRUMP token seen as a parallel but separate event.
$50 Billion Trading Volume Strains Solana Network
Market reactions followed with trading volumes exceeding $50 billion in futures markets. Solana’s network faced congestion, demonstrating the technology’s struggle with high transaction loads.
Concerns arose from experts like Tim Massad regarding potential conflicts of interest around meme tokens tied to high-profile individuals, emphasizing regulatory gaps in current frameworks.
Parallels with LIBRA Scandal Emerge in Token Activities
The event mirrors past episodes like the LIBRA scandal, where insider trading patterns were evident around similarly branded tokens. Evidence pointed towards recurring schemes linked to political figures.
Kanalcoin insights suggested that these incidents reveal ongoing issues in transparency and could lead to increased scrutiny on meme token activities, given historical data and market behavior.
Tim Massad, Former CFTC Chair, “The involvement of presidential families in commercial tokens is plainly wrong”: source
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