Melania's Stock Plummets to Record Low Following $14.75 Million Insider Selling
Warning bell rings as MELANIA team's heavy selling raises eyebrows
It's a troubling turn of events for the MELANIA meme coin (MELANIA) as a series of heavy sell-offs by the project's team has sent shockwaves through the cryptocurrency market. These sell-offs have led to the token's value plummeting to an all-time low, leaving many investors wondering what's going on.
Sell-offs send MELANIA spiraling down
On April 19, on-chain analyst EmberCN sounded the alarm after revealing that wallets connected to the MELANIA project offloaded nearly 3 million MELANIA tokens. In exchange, they received approximately 9,009 SOL, which is roughly $1.2 million. The tokens were liquidated through unilateral liquidity provisions added to the MELANIA/SOL trading pair on Meteora.
This transaction is just a piece of a broader picture. Over the past three days, the MELANIA team has reportedly moved 7.64 million tokens, worth about $3.21 million, from both liquidity and community wallets. They systematically added these tokens to the same liquidity pool and sold them for SOL within a pre-defined price range.
Just hours before EmberCN's disclosure, the team offloaded 2.95 million tokens. EmberCN stated, "In the past 3 days, the $MELANIA project team has continued to transfer out 7.643 million $MELANIA tokens ($3.21M) from liquidity and community addresses, then added them to MELANIA/SOL one-sided liquidity on Meteora, selling $MELANIA within a set range for SOL."
Unsettling patterns and red flags
EmberCN's findings have added weight to concerns over internal dumping-suspicions that first emerged in March. At the time, blockchain analytics firm Bubblemaps reported unusual movements of over $30 million in MELANIA tokens. Originally part of the community allocation, the tokens appeared to be gradually transferred to exchanges without explanation.
Bubblemaps linked these transactions to Hayden Davis, a co-founder of the meme coin, who previously worked on another controversial token, LIBRA, which saw a surge and subsequent collapse after Argentine President Javier Milei endorsed it.
In addition, Bubblemaps revealed that wallets tied to the MELANIA team control roughly 92% of the token's total supply. Critics argue that this level of centralization raises red flags over potential market manipulation.
Fall from grace
As a result of these concerns and repeated sell-offs, MELANIA has seen its price collapse. After reaching a high of over $13 earlier this year, the token has dropped by over 96% to an all-time low of $0.38, according to data from BeInCrypto. However, the steep decline also reflects broader weakness in the meme coin sector as investor appetite for high-risk tokens appears to be waning amid global uncertainty and a more cautious market sentiment.
Stay vigilant and protect your assets
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Disclaimer:
All information in this article is provided for informational purposes only and should not be taken as investment advice. Risk management should always be exercised when investing in cryptocurrencies, and users should not invest more than they can afford to lose.
Enrichment Data:
The MELANIA cryptocurrency is facing growing concerns over insider activity after repeated heavy sell-offs by the project's team have led to a drastic drop in the token's value. Key developments include:
1. Multiple Sell-Offs by Team Wallets
- On April 19, EmberCN reported that 3 million MELANIA tokens ($1.2M in SOL) were sold via liquidity pools on Meteora[1][2].- Over the past three days, the team has moved 7.64 million tokens ($3.21M), systematically adding them to MELANIA/SOL one-sided liquidity on Meteora and selling them for SOL within a pre-defined price range[1][2].
2. Potential Centralized Control and Market Manipulation
- Blockchain analytics firm Bubblemaps linked the sell-offs to Hayden Davis, a co-founder of the meme coin[3].- Wallets tied to the MELANIA team control roughly 92% of the token's total supply, allowing for large-scale price manipulation[3].
3. Catastrophic Impact on MELANIA's Value
- After reaching a peak of $13 in January, MELANIA has dropped by over 96% to an all-time low of $0.38 as of mid-April[1][2][3], with repeated sell-offs exacerbating losses[2].
- The sell-offs by MELANIA's team have raised concerns about insider trading, causing the meme coin's value to plummet to record lows.
- EmberCN revealed that 3 million MELANIA tokens valued at around $1.2 million were sold via liquidity pools on Meteora by team wallets.
- Over the past three days, the MELANIA team moved 7.64 million tokens, worth approximately $3.21 million, from both liquidity and community wallets.
- These token sales were systematically added to the MELANIA/SOL one-sided liquidity on Meteora and sold for SOL within a pre-defined price range.
- This bidirectional liquidity provision has existed despite defi protocols' aim to reduce counterparty risk and foster decentralization.
- Blockchain analytics firm Bubblemaps found that Hayden Davis, a co-founder of MELANIA, is linked to the sell-offs and that wallets tied to the MELANIA team control 92% of the token's total supply.
- The steep decline in MELANIA's price reflects both concerns over internal dumping and broader weakness in the meme coin sector, with investor sentiment growing more cautious amid global uncertainty.
