Trump-linked Crypto Projects See Coordinated Sell-offs, Token Prices Drop 30-50%

The team behind the Melania Trump-themed meme coin, $MELANIA, has been actively selling tokens, with a total of 82.18 million tokens offloaded over the past four months. This activity, spread across 44 wallets, accounted for approximately 8.22% of the total supply and was exchanged for 244,934 SOL, valued at around $35.76 million at the time of the transactions. The sales were primarily conducted through liquidity manipulation, involving the addition and removal of liquidity from pools. This method is often employed to minimize slippage and reduce market impact by avoiding direct sell pressure.

In a related development, the team managing the official Trump-themed meme coin, $TRUMP, recently withdrew $4.4 million in USDC and 347,438 $TRUMP tokens, worth $3.12 million, from liquidity pools. The USDC was transferred to Ethereum, and the tokens were moved to a new wallet. This activity is a common on-chain pattern observed before insider sales, suggesting that the team might be preparing for a significant sell-off.

The timing and tactics of these transactions indicate a broader pattern of coordinated sell-offs across various Trump-linked crypto ventures. Earlier this week, it was revealed that the Trump family had quietly reduced its stake in World Liberty Financial (WLFI) from 60% to 40% through undisclosed transactions over a two-week period. This reduction, executed by DT Marks DEFI LLC, a holding company controlled by Donald Trump and his sons, marks the third stake reduction in just six months, down from 75% in December to 60% in January, and now to 40%.

The reasons behind these coordinated sell-offs remain unclear, as no official comments have been provided by the family. However, the pattern suggests a strategic effort to reduce exposure while maintaining public interest in the projects. Concurrently, major holders of the official $TRUMP meme coin have also been trimming their positions. One significant holder recently sold around 375,000 $TRUMP tokens, valued at approximately $4.9 million.

These developments raise questions about the future direction of Trump-linked crypto projects and the family's involvement in the digital asset space. The $TRUMP token is currently trading at $8.90, reflecting a roughly 30% decline over the past month. Similarly, $MELANIA has experienced a nearly 50% drop over the same period, now trading at $0.91. The coordinated sell-offs and the reduction in stake in WLFI suggest a deliberate strategy to manage exposure while keeping the projects in the public eye. The lack of official comments from the Trump family leaves room for speculation about their long-term plans in the crypto market.