MELANIA Team Sells $30M in Tokens Amid Transparency Concerns

The team behind the memecoin Melania Meme (MELANIA), associated with the former US first lady Melania Trump, has reportedly moved and sold $30 million worth of tokens from the project’s community funds. This revelation comes from a blockchain analytics firm, which detailed the transactions in an April 7 post. According to the firm, 50 million MELANIA tokens, valued at approximately $30 million, were transferred from community funds and subsequently sold without any explanation from the team. The tokens were initially moved to a single wallet before being distributed across multiple addresses. From there, $3 million worth of tokens were transferred to exchanges, two new positions worth $6 million each were opened, and $500,000 worth of MELANIA was sold.

The lack of transparency from the MELANIA team has raised concerns, as neither the team nor Hayden Davis, who is linked to the project, has provided any clarification regarding the token transfers or sales. The firm highlighted that 92% of MELANIA’s supply is held by “team wallets,” suggesting that further actions could impact the token’s value. The firm also noted that Hayden Davis had previously engaged in covert selling of MELANIA tokens through single-sided liquidity, a tactic he allegedly used with another memecoin, LIBRA, which caused a political scandal after its value plummeted.

The MELANIA token was launched on January 19, just a day after Donald Trump introduced his own memecoin and a day before he was scheduled to re-enter the White House. Since its launch, the token has lost nearly all of its value, dropping over 96% from its January high of over $13 to its current trading price of $0.51. This decline reflects the broader trend of waning interest in memecoins amid a wider market downturn. Data from Dune Analytics in March indicated that the number of tokens graduating from the Solana-based memecoin launchpad, Pump.fun, had decreased by over two-thirds since January, falling from 5400 per week to just 1500. Additionally, the total number of tokens launched on Solana has also declined, with only 31,651 launched on April 5, compared to the peak of 95,578 created on January 26.

The quiet sale of $30 million worth of MELANIA tokens underscores the risks associated with memecoins, which often lack transparency and regulatory oversight. The lack of communication from the MELANIA team and the covert selling tactics employed by Hayden Davis raise questions about the integrity of the project and the potential for further market manipulation. As interest in memecoins continues to wane, investors are advised to exercise caution and conduct thorough due diligence before engaging in such speculative investments.