Investors Score Major Profits in Melania Trump’s Cryptocurrency
A recent investigative report reveals that a collective of cryptocurrency traders reaped close to $100 million in profits through seemingly well-timed transactions linked to Melania Trump’s cryptocurrency token, $MELANIA. Just minutes ahead of Melania Trump’s public launch announcement of the token, around two dozen digital wallets engaged in rapid purchases, resulting in an impressive total of $99.6 million in earnings, according to findings by the Financial Times. This trading activity took place in the crucial two and a half minutes prior to the token’s official reveal on January 19.
Timing of the $MELANIA Coin Launch
Melania Trump introduced the $MELANIA coin in a post on Truth Social just hours before her husband’s inauguration, significantly elevating the token’s profile and leading to an immediate surge in its market value following the announcement. The traders involved had invested roughly $2.6 million in the tokens just moments before the public launch, swiftly realizing their profits as approximately 81% of the tokens purchased were sold within 12 hours of the announcement. This rapid trading technique is a common tactic among cryptocurrency speculators, often referred to as “snipers,” who capitalize on insider knowledge for substantial returns.
Blockchain’s Transparency vs. Anonymity
While cryptocurrency transactions are documented on blockchain technology—a system known for its transparency—the individuals behind the digital wallets often remain anonymous. Memecoins like $MELANIA, which lack inherent utility and regulatory oversight akin to traditional securities, are especially susceptible to exploitation. The trading activity took place in the critical two and a half minutes leading up to the token’s public unveiling on January 19.
Risks of Unregulated Trading Practices
The absence of regulatory frameworks places retail investors at significant risk from manipulative trading behaviors. One particularly striking transaction involved a single digital wallet that invested $681,000 in $MELANIA tokens just 64 seconds before the project’s public announcement. Within a day, this wallet owner had turned a profit of $39 million, subsequently gaining an additional $4.4 million in the following three days. Collectively, these strategically timed purchases represented 16.7 million of the 200 million $MELANIA tokens available at launch, showcasing the considerable advantage enjoyed by traders acting on advanced information.
Comparative Analysis with $TRUMP Token
In contrast to Melania Trump’s token, the $TRUMP token—backed by President Donald Trump—did not witness any comparable pre-launch purchases when it debuted two days earlier. The earliest acquisition of $TRUMP tokens occurred only after the public announcement, highlighting the anomalies surrounding the $MELANIA coin’s launch.
Controversy and Accountability
The investigation also uncovered connections between one early wallet and Hayden Davis, a Texas-based cryptocurrency entrepreneur known for past controversial crypto ventures. Despite the findings, Davis has publicly denied any misconduct, asserting, “There was no money made from the Melania team. We didn’t take any liquidity out. Zero.” Moreover, the entities behind the $MELANIA token, distinct from the pre-launch traders, reportedly generated approximately $64.7 million from initial sales and transaction fees. The token is managed by MKT World LLC, a Delaware-based firm associated with Melania Trump since 2021, though details regarding its specific role and profit distribution remain unclear. The Post has reached out to Davis for comment, while a spokesperson for the First Lady declined to provide a statement.
