Pump&Dump or Fair Launch? TRUMP and MELANIA Tokens Spark Controversy
Accusations of a pump and dump scheme have surfaced against Donald Trump and his associates after they released two memecoins that greatly enriched the future U.S. president and his spouse.
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Within a day of the Official Trump token (TRUMP) hitting a $15 billion market cap, Melania Trump launched her own meme coin. Although the event initially generated excitement, it quickly spiraled into criticism and allegations of unethical conduct by Trump.
You were right if you thought the smashing success of $TRUMP would make Trump greedy,” Bianco Research president Jim Bianco said on Jan. 19, following the launch of Mrs. Trump’s token.
Bianco views the release of $MELANIA as a doubling down effort that unfortunately diluted market interest. He expressed concerns that investors are wary of Trump and his team potentially having a stash of similar coins ready to launch.
Shortly after the release of his wife’s token, the value of the TRUMP token plummeted by 38%. Meanwhile, MELANIA surged to a $13 billion market cap within four hours of its release but then fell sharply to $7.3 billion.
Edward Dowd, founder of Phinance Technologies, labeled it the “largest pre-inauguration blunder,” pointing out that the TRUMP token’s rapid decline was a strategic misfire in an already volatile market situation.
Financial analyst Michael A. Gayed declared that trust in Trump has been completely shattered, describing the TRUMP token as a textbook example of a pump and dump scheme.
Furthermore, José Maria Macedo, co-founder of Delphi Labs, criticized insiders involved with the $TRUMP launch for not recognizing its full potential. He suggested that they either failed to acquire enough tokens or sold them prematurely.
Macedo argued that the hurried launch of $MELANIA was an attempt to make up for earlier missteps and maximize profits, but this approach led to a catastrophic $30 billion loss in value, turning the situation into a clear case of fraud and potentially resulting in numerous legal infractions.
Ryan Selkis, a prominent figure in the 2024 crypto scene, a Trump supporter, and former CEO of the research company Messari, recommended that the president dismiss the team behind the MELANIA meme coin launch. He believes that these individuals are out of their depth and acting against Trump’s best interests.
Despite facing widespread criticism, the MELANIA and TRUMP tokens have still managed to capture significant trader interest. As of now, their combined market capitalization stands at over $12.3 billion.
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