- A trader lost $7.08 million on his investments in TRUMP and MELANIA meme coins.
- A single insider wallet is suspected to have caused a 50%-60% price crash in TRUMP alone.
- Donald Trump and his team were accused of orchestrating a pump and dump scheme.
Donald Trump’s team launched two meme coins, Official Trump (TRUMP) and Official Melania Meme (MELANIA), only to see their prices crash shortly after debut.
The coins initially surged, with TRUMP and MELANIA reaching high valuations before losing 43.31% and 64% of their value within 24 hours, respectively. Critics have accused Trump’s team of running a pump-and-dump scheme, using investor funds as exit liquidity ahead of Inauguration Day.
Related: Robinhood Lists TRUMP Token: Here’s What Happened Next
Whale Takes Heavy Loss on TRUMP and MELANIA Tokens
Not all investors profited from the launch of TRUMP and MELANIA. According to on-chain analyst The Data Nerd, a whale spent $9.5 million to acquire 187.36K TRUMP tokens at an average price of $58.03.
TRUMP now trades at $32.92, causing a $7.08 million loss for the whale, who still holds 193.7k TRUMP and 1.82 million MELANIA tokens. MELANIA’s price dropped from an average of $7.78 to $3.89, marking a 64% decline in 24 hours, CoinMarketCap data shows.
Similarly, the whale purchased 1.348 million MELANIA tokens on Monday at an average price of $7.78. MELANIA now trades at $3.89, marking a 64% decline in 24 hours. On Tuesday, The Data Nerd updated that the whale had lost $7.08 million but still held 1.82 million MELANIA and 193.7K TRUMP tokens.
Pump-and-Dump Allegations Target Trump Team
The steep rise and fall of TRUMP and MELANIA have led to allegations of a pump-and-dump scheme. Critics accused Trump’s team of using investor funds as exit liquidity for the projects ahead of Inauguration Day.
Related: Trump’s Inauguration Sees OBT Token Launch and KuCoin Listing
Blockchain analytics platform Bubblemaps revealed that a whale, likely an insider, triggered a 50%-60% drop in TRUMP’s price. This whale reportedly purchased TRUMP tokens early and split the holdings into ten wallets. Following MELANIA’s launch, these wallets dumped their TRUMP tokens, sending the cryptocurrency into a downward spiral.
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