04 Apr 2025

light mode

Pump&Dump or Fair Launch? TRUMP and MELANIA Tokens Spark Controversy

Illustration of a pink piggy bank with scattered coins and a financial graph in the background, symbolizing economic updates and savings trends.

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.

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.

The content on The Coinomist is for informational purposes only and should not be interpreted as financial advice. While we strive to provide accurate and up-to-date information, we do not guarantee the accuracy, completeness, or reliability of any content. Neither we accept liability for any errors or omissions in the information provided or for any financial losses incurred as a result of relying on this information. Actions based on this content are at your own risk. Always do your own research and consult a professional. See our Terms, Privacy Policy, and Disclaimers for more details.

Articles by this author
Illinois Set to Drop Charges Against Coinbase in Staking Case

Illinois Set to Drop Charges Against Coinbase in Staking Case

Illinois is preparing to drop its case against Coinbase’s staking service, signaling another crack in the U.S. crackdown on crypto.

Anton Kryshtal
Ethereum Developers Target May 7 for Pectra Mainnet Launch

Ethereum Developers Target May 7 for Pectra Mainnet Launch

The Ethereum Pectra upgrade, including 11 major protocol improvements, is expected to launch on the mainnet on May 7, 2025.

Anahit Avetisyan
Why Is $BTC Dropping? Trump’s Tariff Shock and the Big Tech Meltdown

Why Is $BTC Dropping? Trump’s Tariff Shock and the Big Tech Meltdown

The escalating U.S.–China trade war and a tech stock downturn have created a perfect storm. Crypto investors are moving to cash as BTC breaks through key support levels.

Vlad Vovk
Warren Demands SEC Release Information on WLFI, Investigating Trump Ties

Warren Demands SEC Release Information on WLFI, Investigating Trump Ties

Senator Warren and Congresswoman Waters have called on the SEC to release information about WLFI, a crypto firm linked to the Trump family, raising concerns over the impartiality of crypto industry regulation.

Dmytro Psevdonimenko
The Man Who Forgot $240M: A Bitcoin Tragedy for the Ages

The Man Who Forgot $240M: A Bitcoin Tragedy for the Ages

This is perhaps the most iconic crypto loss story of all time. In 2011, Stefan Thomas received 7,002 BTC for making a video. Today, that stash is worth $240 million. But he forgot the password. An entire fortune locked away forever.

Elina Moskovchuk
Sam Altman, ChatGPT, and the AI Spark That Lit Up Crypto

Sam Altman, ChatGPT, and the AI Spark That Lit Up Crypto

At the end of 2022, a public beta of an AI-powered product quietly launched. It looked like nothing more than a simple chat window. However, it turned out to be a global sensation.

Elina Moskovchuk
Hot Crypto Discussions on X Today: VPN Use, Trump Tariffs, and More

Hot Crypto Discussions on X Today: VPN Use, Trump Tariffs, and More

The crypto market faces a blow as Trump announces 10% tariffs on all countries, fueling economic uncertainty that impacts the financial sector.

Anahit Avetisyan
Fiat Money vs Commodity Money: What’s the Difference?

Fiat Money vs Commodity Money: What’s the Difference?

Explore the key differences between fiat money and commodity money. Learn about their intrinsic value, historical context, advantages, disadvantages, and real-world examples.

The Coinomist
Blockchain Trilemma: Explained with Real-World Examples

Blockchain Trilemma: Explained with Real-World Examples

In recent years, blockchain technology has gained immense popularity, being the backbone of cryptocurrencies, decentralized finance (DeFi), and various other applications. However, as the technology continues to evolve, a crucial problem has surfaced: the blockchain trilemma. This issue is particularly important for developers and organizations seeking to build scalable, secure, and decentralized blockchain solutions. The […]

The Coinomist
How Is a Cryptocurrency Exchange Different from a Cryptocurrency Wallet?

How Is a Cryptocurrency Exchange Different from a Cryptocurrency Wallet?

A guide detailing the differences between cryptocurrency exchanges and wallets. Learn about their distinct roles, security features, liquidity, and user control in the digital asset ecosystem.

The Coinomist
What Are Assets? Differences Between Coins and Tokens

What Are Assets? Differences Between Coins and Tokens

Discover the meaning of assets in finance and crypto, and learn the key differences between coins and tokens to make informed investment decisions.

The Coinomist
What Is a Margin Call? An Essential Guide

What Is a Margin Call? An Essential Guide

A comprehensive guide to understanding margin calls in trading. Learn what triggers them, how they work, their risks, and strategies to manage or avoid them

The Coinomist
What Happens When Bitcoin Runs Out? Predictions and Strategies

What Happens When Bitcoin Runs Out? Predictions and Strategies

Explore what happens when Bitcoin reaches its 21 million supply cap. Learn how the shift from block rewards to transaction fees could impact miners, investors, and the entire ecosystem.

The Coinomist
Arthur Hayes Challenges Fed Independence in His New Essay “The BBC”

Arthur Hayes Challenges Fed Independence in His New Essay “The BBC”

In his latest essay “The BBC,” Arthur Hayes examines the emotional pressures on the Federal Reserve and the monetary policy challenges that could lead to increased liquidity in the crypto market.

Dmytro Psevdonimenko
Trump’s “US Crypto Reserve” Plan: A Game Changer or Just Talk?

Trump’s “US Crypto Reserve” Plan: A Game Changer or Just Talk?

It takes just one post from Trump to stir the crypto market. Recently, he announced on Truth Social that the evaluation of a strategic crypto reserve is in progress as part of his broader Trump crypto policy.

Anahit Avetisyan
MORE
Dubai Lets You Rent Homes and Cars With Bitcoin. Here’s What to Know

Dubai Lets You Rent Homes and Cars With Bitcoin. Here’s What to Know

Now, you can rent in Dubai with crypto, signing rental agreements using BTC, altcoins, or USDT for both short-term vacations and long-term stays as an expat.

Yara Zornell
Why Lisbon is Now Emerging as The Newest World’s Crypto Capital

Why Lisbon is Now Emerging as The Newest World’s Crypto Capital

Imagine a city of hills, narrow cobblestone streets, and fado music drifting from cozy bars. This is Lisbon, the capital of Portugal, now rapidly transforming into a modern crypto city.

Iaroslava Kramarenko
MORE