MELANIA Token Frenzy Sparks Insider Concerns and Blockchain Backlash

A handful of crypto wallets made close to $100 million in minutes by trading the MELANIA token—launched under the name of First Lady Melania Trump—just before its official debut, raising fresh concerns about insider manipulation in political-themed crypto projects.

The timing was suspect: blockchain data reviewed by Financial Times shows around two dozen wallets acquired $2.6 million worth of MELANIA within three minutes of Melania Trump’s January 19 post on Truth Social announcing the coin. The token’s price surged shortly after, allowing most of those traders to cash out swiftly—81% of the profits were realized within half a day.

Unlike the TRUMP token, which launched two days earlier with no early activity, MELANIA’s release appears to have been exploited for a quick flip. Despite offering little beyond branding and vague benefits like a dinner with Melania, the token operated as a pure speculative asset and, due to its nature, avoided triggering federal securities laws—placing such trades outside insider trading enforcement.

Some of the wallets involved in the early accumulation were linked to Hayden Davis, a Texas crypto entrepreneur previously associated with controversial projects like the LIBRA token, which was tied to Argentina’s President Javier Milei. Davis denied involvement in profiting from the MELANIA token, but FT’s blockchain analysis traced connections between his ventures and the early trades.

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Behind MELANIA is MKT World LLC, a Delaware-registered entity previously used by Melania Trump. This group reportedly pulled in over $64 million from initial sales and fees, not counting the $99.6 million pocketed by early traders. However, no official statements have been made regarding the token’s governance, revenue structure, or how much Melania herself may have earned.

The MELANIA launch sparked an intense trading frenzy. In just the first 24 hours, perpetual futures volume for both MELANIA and TRUMP exceeded $50 billion. MELANIA alone saw a 56% jump in open interest within 90 minutes, congesting the Solana blockchain and disrupting services like Coinbase and Phantom. But the hype was short-lived: developer-linked wallets eventually dumped over 31 million tokens, sending MELANIA tumbling from $13 to $0.38 before it stabilized around $0.32.

This isn’t Melania Trump’s first brush with controversial crypto efforts. Earlier projects tied to her name included a disputed NFT auction and an ambiguous blockchain-based charity push.

Ethics concerns continue to mount. Former CFTC chair Tim Massad criticized the blending of political branding and crypto speculation, calling it a misuse of public influence. Meanwhile, the token’s slow unlock schedule—3% released in February, followed by monthly 2.25% distributions—leaves open questions about long-term intentions and who truly benefits from the venture.

Alexander Stefanov