TL;DR
- A Solana user made nearly $40 million in profits with the MELANIA memecoin after a staggering 25,600% price surge in just hours.
- Analysts warn that 90% of the token’s supply is held in a single wallet, raising concerns about a possible “rug pull” or massive fraud.
- The project’s website, created just one day before launch, lacks security measures, and the team’s unprofessional organization fuels doubts.
In a surprising turn of events in the cryptocurrency world, a Solana user made nearly $40 million in profits after investing in Melania Trump’s official memecoin, called “Official Melania Meme (MELANIA)”. According to Lookonchain, the initial investor put $800,000 into USD Coin (USDC) on January 20 and turned it into $16.45 million in just 12 hours, marking an almost 2000% return.
The price of the MELANIA token skyrocketed by 25,600% within hours of its launch, reaching a market capitalization of $2 billion. Another investor turned $560,000 into $11.5 million, and reports indicate a third trader earned over $47 million in profits. Within hours, MELANIA amassed nearly 500,000 holders and became the tenth most traded cryptocurrency by volume, according to DEX Screener.
The token’s launch coincided with promotions on social media by Melania Trump herself and came just days before the inaugural event of her husband, Donald Trump, who also launched his own memecoin, Official TRUMP ($TRUMP).
A Possible Scam Disguised as Success?
Despite its initial success, blockchain experts have raised serious concerns about the transparency and security of the MELANIA project. According to Bubblemaps, 90% of the total token supply is concentrated in a single wallet, contradicting the team’s claims of fair distribution.
Additionally, the project’s official website, created just a day before its launch, lacks basic cybersecurity measures and features poorly developed code. This led analysts, such as the developer known as “cigar,” to label the project as unprofessional.
Conor Grogan, a Coinbase executive, compared the MELANIA team to a group of “college kids”, highlighting its lack of organization compared to the more professionally backed TRUMP token.
While some experts see a “rug pull” as unlikely, connections to platforms like “pump.fun”, known for speculative projects, have raised red flags. Investors are urged to exercise caution due to the lack of clarity surrounding the project’s structure and goals.
In the highly volatile cryptocurrency ecosystem, MELANIA stands as both a story of extraordinary profits and a cautionary tale about the significant risks of blindly trusting projects with little transparency or proper oversight.
