In a startling revelation that has sent shockwaves through the cryptocurrency community, a group of savvy traders reportedly managed to rake in an impressive $100 million by strategically purchasing Melania Trump’s memecoin, MELANIA, mere moments before its official launch. According to a report published by the Financial Times on May 6, these traders bought $2.6 million worth of the tokens ahead of the public announcement on January 19, 2025, reaping the rewards of a 550% price surge soon after.
The Surge and the Scrutiny
The price of MELANIA tokens rocketed from approximately $2.00 to $12.95 within hours of the launch announcement, allowing traders to cash out within 12 hours. The Financial Times detailed that 24 accounts scooped up 16.7 million of the 200 million MELANIA tokens that were part of the sale. In a frenzy that followed the public announcement, an additional $900,000 worth of tokens were reportedly acquired by 22 other accounts within just 42 seconds.
The explosive growth of these tokens is not the only headline-grabbing aspect. Both MELANIA and TRUMP tokens, named after the former First Lady and the presidential hopeful, have been embroiled in controversy, with allegations of conflict of interest and potential corruption. Critics have raised concerns about the possibility of the tokens being used as tools for bribery or foreign influence, marking a turbulent chapter in the intersection of politics and cryptocurrency. This follows a pattern of political maneuvering in the crypto space, as detailed in our coverage of a tiny company’s bid to buy $20M TRUMP Token to influence U.S.-Mexico trade deals.
Political Ramifications and Market Reactions
The launch of the memecoins has not only affected the cryptocurrency market but also stirred the political pot. A significant point of contention arose after Donald Trump, who announced the launch of his TRUMP token just days before MELANIA’s debut, proposed a private dinner with top TRUMP token holders. This offer sparked outrage among lawmakers, leading one senator to call for his impeachment, suggesting that the tokens could be used to curry political favor.
The value of both the MELANIA and TRUMP tokens has since plummeted from their initial highs. As of May 6, 2025, the MELANIA token was trading at a mere $0.31, while the TRUMP token, which saw a brief uptick after the dinner announcement in April, settled at $10.90.
It’s worth noting that two companies closely linked to Donald Trump control about 80% of the TRUMP token supply. Although many of these tokens remain locked and are set to be released gradually over the next three years, skeptics warn of a potential rug pull, where project insiders could leave investors high and dry. For a deeper dive into the regulatory implications, see our coverage of Trump’s Crypto Sherpa Bo Hines’ statements on crypto legislation.
A Clouded Future in Crypto
The unfolding saga of the MELANIA and TRUMP tokens underscores a critical intersection of digital assets and political influence, raising questions about the future of memecoins in the volatile crypto landscape. While these tokens have captured public imagination and stirred market activity, their association with high-profile political figures complicates the narrative.
The crypto community remains divided, with some viewing these developments as a natural evolution of digital assets into mainstream consciousness, while others see it as a cautionary tale of unchecked influence and potential market manipulation.
With lawmakers and regulatory bodies increasingly scrutinizing the crypto space, the future of politically-tied memecoins hangs in the balance. Will these tokens foster a new era of digital engagement, or will they become relics of a speculative frenzy, overshadowed by regulatory crackdowns and political fallout? As the debate rages on, one thing is clear: the world of cryptocurrency is anything but predictable.
Source
This article is based on: FT report suggests advance knowledge of Melania Trump memecoin launch
Further Reading
Deepen your understanding with these related articles:
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- U.S. Congress Braces for Intense Debate Over Crypto Legislation This Summer (openai)
- Truth Social Explores Cryptocurrency Launch for Subscription Payments (openai)
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
