Financial Times analysts have uncovered suspicious activity surrounding the launch of the MELANIA memecoin, with unknown investors pocketing nearly $100 million after buying tokens minutes before the official announcement.
Launched on January 19, 2025, just one day before Donald Trump’s inauguration, the MELANIA token followed closely behind the Official Trump token that had debuted two days earlier. Both Solana-based memecoins have faced criticism for their lack of transparency and practical utility.
Pre-Launch Trading of MELANIA Tokens Raises Ethical Concerns, with Significant Profits Reported
According to blockchain data analyzed by the Financial Times, 24 wallets received $2.6 million worth of MELANIA tokens just two and a half minutes before Melania Trump announced the launch on Truth Social. These wallets acquired 16.7 million tokens, representing 33.4% of the total supply.
One particularly notable transaction involved a single account investing $681,000 in MELANIA tokens just one minute before the public announcement. This investor alone reportedly made $39 million in profits within 12 hours by selling most of their holdings as prices skyrocketed following the announcement. They gained an additional $4.4 million in the following three days.
The Financial Times report indicates that these pre-launch wallets don’t belong to the official MELANIA team, which allegedly secured separate profits totaling $64.7 million.
While raising ethical concerns, these activities don’t necessarily break U.S. securities laws. The SEC issued guidance in February 2025 clarifying that memecoins are “more akin to collectibles” than securities, placing them outside traditional investor protection frameworks.
The MELANIA token is officially managed by MKT World LLC, Melania Trump’s Florida-registered company that she has used for various enterprises since 2021. According to the Melania Meme website, the team controls 30% of the token supply, with another 30% held in treasury, 20% allocated for community purposes, and 20% available to the public.
Further concerns emerged when the team behind MELANIA was accused of “sniping” various memecoins after capitalizing on their own token. Sniping involves using automated tools to instantly purchase new memecoins before prices increase. A February report claimed the MELANIA team made $2.4 million through such tactics.
MELANIA vs. TRUMP: A Tale of Two Tokens and Regulatory Shadows
Blockchain analysis firm Bubblemaps linked addresses associated with the MELANIA sniping operation to multiple pump-and-dump schemes involving other tokens.
The MELANIA token’s trajectory differs significantly from the Official Trump token, which was launched by a separate team and reportedly generated $350 million through fees and sales. Chainalysis data shows 58 wallets gained over $10 million each in TRUMP tokens, with total profits reaching $1.1 billion.
However, approximately 764,000 wallets holding smaller amounts of TRUMP tokens lost money on their investments. The total number of wallets involved in TRUMP investments stands at around two million, with the team reportedly controlling 80% of the token supply.
While the TRUMP token has experienced occasional price spikes benefiting the team’s holdings, MELANIA’s price has remained consistently low since shortly after launch. Now valued at approximately 32 cents, it is 97% lower than its all-time high of $13.73 when it was initially traded.
The Trump family’s foray into the memecoins has been controversial, with some critics contending that the tokens can be used as a tool for bribing high-ranking government officials or as a tool for insider trading. The absence of regulation and the huge profits reaped by early investors have also raised these concerns.
As cryptocurrency markets evolve further with the new administration, the questions over these presidential-adjacent tokens underscore continued issues at the nexus of politics, technology, and financial regulation.
