MELANIA Token Plummets 96% Amid Insider Selling Allegations

The MELANIA token, a memecoin associated with the former US First Lady Melania Trump, has encountered significant turbulence following allegations that its developers have been offloading large amounts of tokens. Blockchain data analyzed by EmberCN, a blockchain analyst, indicates that the project’s team has allegedly sold over 31 million tokens in the past month, raising serious concerns about potential insider manipulation.

Since March 16, wallet addresses linked to the MELANIA project have reportedly transferred 31.685 million tokens from community and liquidity pools. These tokens were then converted into 138,800 SOL, which was valued at approximately $18.4 million at the time of the transactions. This substantial sell-off has sparked worries about the integrity and stability of the MELANIA token.

EmberCN disclosed that the token sales were conducted through a method known as unilateral liquidity provisioning. This technique allows sellers to convert tokens into cryptocurrency without necessarily requiring a buyer on the other end, which can lead to significant market impact. The actions of the developers have reportedly exerted considerable downward pressure on the token’s value, causing it to plummet.

According to data from CryptoSlate, the MELANIA token, which reached a peak of over $13 after its launch earlier this year, experienced a dramatic decline of more than 96%. The token hit an all-time low of $0.38 on April 20. Despite this sharp drop, the MELANIA token has shown signs of recovery, with its price rebounding by around 14% as of the latest reports. Currently, the token is trading at approximately $0.5223.

This incident highlights the risks associated with memecoins and the potential for insider manipulation within the cryptocurrency market. The allegations against the MELANIA token developers underscore the need for greater transparency and regulatory oversight to protect investors from such activities. The community and stakeholders will be closely monitoring the situation to assess the long-term impact on the token and the broader cryptocurrency ecosystem.