Controversy Surrounds Melania Trump Memecoin Launch with Allegations of Insider Trading
By: Eliza Bennet
The recent Melania Trump memecoin launch has sparked significant controversy amid allegations of insider trading. According to the Financial Times, a select group of traders reportedly profited by about $100 million within minutes of the token's market debut. These individuals purchased $2.6 million worth of MELANIA tokens shortly before Melania Trump announced the launch on social media, causing the token's price to surge from $2.00 to $12.95—a 550% increase. Most of these traders liquidated their holdings within 12 hours, drawing scrutiny and raising ethical concerns regarding the exploitation potential in such apparently unregulated spaces.
The memecoin's launch, following President Donald Trump's own TRUMP coin release, underscores the volatile nature of political celebrity-branded cryptocurrencies. Interestingly, former CFTC chair Tim Massad has criticized the involvement of presidential families in commercial tokens as "plainly wrong" due to potential conflicts of interest. Furthermore, Senator Chris Murphy called for a ban on further promotion of meme coins by Trump, amid worries about exerting undue influence for personal profit—a concern pronounced when public figures are involved.
Despite these controversies, Melania Trump's association with digital assets continues to generate interest. Earlier ventures in this domain, including NFT-related projects like the contentious "Head of State" NFT, have also faced allegations of unethical practices such as wash trading. Additionally, previous digital initiatives targeting philanthropic causes encountered skepticism concerning genuine intentions. The market reaction to the recent memecoin, including the figures related to futures trading and liquidity events reminiscent of events tied to the LIBRA token scandal, indicates the broader issues of anonymity and regulatory loopholes facing retail traders.
As MELANIA's price stabilizes and its unlock schedule progresses, attention remains on the purse strings held by entities such as MKT World LLC, responsible for significant withdrawals during primary sales. The episode not only highlights the intricate dynamics of political branding in cryptocurrency but also reflects growing tensions between celebrity influence and market ethics as the digital asset landscape continues to evolve.
