Large cryptocurrency investors have been offloading their holdings of the Official Melania (MELANIA) memecoin at staggering losses, as the token—associated with former First Lady Melania Trump—plunges 93% from its all-time high.
On-chain analytics firm Lookonchain uncovered two significant whale transactions that highlight the extent of the sell-off. One major investor originally purchased 13.97 million MELANIA tokens for 30 million USD Coin (USDC) just a month ago, only to sell them for 14.32 million USDC on Monday—resulting in a painful $15.68 million loss. Another whale who acquired 6.69 million MELANIA for 10 million USDC more than three weeks ago sold their holdings over the past two days for just 6.27 million USDC, taking a loss of $3.73 million.
The heavy selling by whales, known for their influence on market trends, signals a sharp decline in long-term confidence in the memecoin. The broader market downturn, coupled with concerns over speculative digital assets, has further exacerbated the sell-off, raising doubts about MELANIA’s viability in the current crypto climate.
Market-Wide Downturn
The recent sell-off of MELANIA tokens is part of a broader market downturn, with Bitcoin (BTC) leading the decline. The world’s largest cryptocurrency has fallen below $90,000, a sharp drop from its January peak of over $109,000. After weeks of range-bound movement, Bitcoin’s sudden dip is largely attributed to mounting concerns over U.S. economic policies, inflation risks, and global trade tensions.
On Monday, President Trump reaffirmed his administration’s plan to implement tariffs on Mexico and Canada, reigniting fears that trade restrictions could drive inflation higher. Investors are closely monitoring upcoming economic data, particularly the Federal Reserve’s core Personal Consumption Expenditures (PCE) index, which is set to be released on Friday. A higher-than-expected inflation reading would complicate the Fed’s ability to cut interest rates, making risk assets like cryptocurrencies and equities less attractive.
Adding to the turmoil, the market is still reeling from the recent $1.5 billion Bybit exchange hack, one of the largest in crypto history. Attackers, reportedly linked to the North Korea-affiliated Lazarus Group, managed to drain approximately 401,000 ETH from Bybit’s cold wallet, further eroding investor confidence.
Implications for Memecoins
The Melania memecoin (MELANIA) continues to nosedive, trading at $0.9210 as of the latest data, marking a staggering 93% decline from it’s all-time high of $13.73 recorded shortly after its launch last month. The collapse has erased approximately $12.8 billion from its fully diluted market capitalization, underscoring the extreme volatility of memecoins.
The Solana-based token debuted just before former President Donald Trump’s inauguration, mirroring the launch of the Official Trump (TRUMP) token. However, both tokens have faced severe downturns, with TRUMP also plummeting 82% from its record high.
Adding to MELANIA’s struggles, on-chain investigators have linked its creators to the controversial LIBRA memecoin, a project promoted by Argentine President Javier Milei that suffered a major collapse and sparked allegations of fraud. This association has further dampened investor confidence, raising concerns about memecoins launched under political branding and their long-term viability.
Quick Facts:
- Major MELANIA investors have collectively lost over $18 million due to recent sell-offs.
- The cryptocurrency market has seen a reduction of approximately $12 billion in investor wealth amid recent downturns.
- Bitcoin’s value has fallen below $90,000, influenced by economic concerns and significant security breaches.
