Melania Trump promoted a memecoin named $MELANIA, and within hours on-chain trackers reported that wallets linked to the project sold about $10 million of the token. The sales pushed the price down from roughly $0.39 to $0.34 and cut the market value to near $152 million. Retail holders sold into thin bids and order books skewed as the market absorbed the supply.
Bubblemaps labeled the outgoing transfers “suspicious activity” and warned of a “potential rug pull”. Users who bought after the announcement posted screenshots of losses, noting that they now hold tokens worth a fraction of the price they paid.
On-chain trackers tied the rapid sell-off to wallets linked to the project, estimating about $10 million in sales shortly after the promotion. The immediate selling pressure coincided with a drop from ~$0.39 to ~$0.34, leaving market capitalization near $152 million and skewing order books as retail holders hit thin bids.
On-chain activity and market reaction
Analytics platform Bubblemaps flagged the transfers as suspicious and cautioned about a potential rug pull. Users who entered after the announcement shared losses, reflecting a price now far below their entry and highlighting fragile liquidity conditions.
A memecoin’s value rests on social attention rather than cash flow, revenue, or economic utility, a dynamic that can amplify sharp moves when attention spikes and fades.
The event carries four immediate consequences, drawn outlining risks across trust, liquidity, compliance, and regulation. A single team sale of this size weakens faith in any project fronted by a public figure, and both retail traders and institutions may step back.
Block sales during thin trading hours deepen the drop and widen spreads. Exchanges and custodians that list $MELANIA must trace the flagged wallets and decide whether the activity breaches their internal policies.
Regulators often open files when a promoter’s token shows on-chain evidence of possible insider selling or withheld disclosure.
No regulator has issued a ruling yet. The next steps are an on-chain audit by analytics firms and compliance checks by the exchanges that list the token. The sequence follows a familiar memecoin script—celebrity tweet, sudden liquidity, and a concentrated dump that leaves later buyers with losses, underscoring the practical need for tighter oversight and caution among market participants.
