The MELANIA token, tied to the US first lady Melania Trump, is in the pits after tanking 98% from its ATH. The token was drowned by criticism over the project’s lack of transparency around fund management. Above all that, the team has not cared to come clean with investors.
The First Lady famously launched the meme coin on the eve of Donald Trump’s presidential inauguration. The token quickly surged, reaching a peak of $13.73 before crashing. Its price never recovered. According to on-chain data, it is down more than 90% from launch and 98% from its all-time high.
US First Lady Melania Trump has returned to promoting her SOL-based meme coin, MELANIA memecoin, after a 10-month absence. Yesterday, she published an AI-generated video that called the token a path “into the future.”
This sudden move triggered a price spike for the token, causing it to jump from $0.16 to $0.19 before tanking again. However, the post conspicuously lacked any comment from Trump addressing the millions of dollars in token sales earlier this year.
In response to the news, blockchain analysts raised concerns over how the team behind the MELANIA meme coin handled community funds. According to data tracked by Bubblemaps, in April, the MELANIA project moved and sold over $30 million worth of community tokens without explanation.
The platform also highlighted that $10 million worth of tokens were removed from community pools and sold. The platform criticized the posting of an AI video after months of silence without addressing fund movements.
In addition, Blockchain intelligence firm Lookonchain identified $1.5 million in token sales over three days leading up to April 28. The sales followed a 21% price increase during the previous week and resembled a dollar-cost averaging pattern, where fixed amounts are liquidated at scheduled intervals.
They used a formula similar to a Dollar-Cost Averaging (DCA) strategy. That is conducting small, staggered sales rather than a single massive dump. This calculated approach allowed the team to offload many of their holdings, generate consistent selling pressure on the token, and mitigate the risk of triggering an immediate, catastrophic price crash.
As a result of these concerns, the coin rally is steady. The coin is up only 0.55% in the last 24 hours, trading at 0.1816. The coin currently has a market cap of $161.2 million.
MELANIA chose the wrong allies
The team behind MELANIA is a no-show. Hayden Davis is one of the co-creators of the MELANIA token alongside other high-profile meme coins during the 2025 cycle. Davis also helped launch the LIBRA token, which collapsed earlier this year when eight insider wallets cashed out $107 million in liquidity. The Libra sell-off wiped out $4 billion in market value within hours.
In March, Davis launched a Wolf of Wall Street-themed token with over 80% insider allocation. That project lost 99% of its value within two days of trading. Analysts said MELANIA struggled to separate itself from these controversies, given overlapping development teams and investor networks.
Unlike MELANIA, TRUMP had more periods of success. The token experienced price surges following key policy announcements. However, the TRUMP token has also faced significant public criticism, primarily driven by accusations of market manipulation.
The controversy peaked in May when the President invited the top 220 token holders to an exclusive dinner at his Virginia golf club. Critics argued that it was an inappropriate use of public office, especially since the event’s publicity also increased the token’s price. Meanwhile, the coin is steady, trading at $7.74.
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Source: https://www.cryptopolitan.com/melania-token-dips-98-amid-30m-money-move/
