From ethical to tokenomics concerns, Official Melania Meme, the Solana memecoin backed by first lady Melania Trump, just like OFFICIAL TRUMP, the Solana memecoin launched by President Donald Trump, raised several red flags when it launched.

By EthicHub - Updated April 18, 2024 at 1:13 a.m. PDT - From ethical to tokenomics concerns, Official Melania Meme, the Solana memecoin backed by first lady Melania Trump, just like OFFICIAL TRUMP, the Solana memecoin launched by President Donald Trump, raised several red flags when it launched.

From ethical to tokenomics concerns, Official Melania Meme, the Solana memecoin backed by first lady Melania Trump, just like (NYSE:PLTR)OFFICIAL TRUMP, the Solana memecoin launched by President Donald Trump, raised several red flags when it launched.

Later today, the memecoin hit a new all-time low of $0.00057. To put this in perspective, the coin is now trading 96% below its all-time high and insiders have been cutting tokens.

What Happened: According to blockchain data provider Bubblemaps, the token with the ticker MELANIA is now facing “huge sell-offs” as the team behind the project is quietly siphoning millions from the community fund.

Crypto projects typically set aside community funds for everything from ecosystem development to community incentivization programs. But Bubblemaps’ analysis suggests that members of the MELANIA team appear to be using the project’s community fund as a personal piggy bank.

According to the blockchain data provider, MELANIA team members have sold 50 million tokens, which are valued at around $30 million, from the project’s community fund. They are splitting the tokens across multiple addresses. So far, $3 million worth of tokens have made it to exchanges, with $500,000 in tokens confirmed sold.

Just over a week ago, Bubblemaps highlighted a $2 million extraction from MELANIA’s liquidity pools, with $1 million being sold on exchanges. At the time, the firm stated that the brunt of the activity was likely being carried out by Hayden Davis.

Davis is seen as the mastermind behind both MELANIA and the Argentine President Javier Milei-backed LIBRA token. According to Bubblemaps, wallets tied to Davis saw another $1 million in MELANIA tokens being sold via single-sided liquidity, the same tactic he used to extract $100 million in liquidity from LIBRA.

“Hayden may have seen the recent drop in attention as a window to quietly move funds while fewer people are watching,” the blockchain data provider wrote.

The recent sales of MELANIA are concerning, as Bubblemaps highlights that wallets tied to the team control 92% of the token supply.

“The damage isn’t done yet,” the firm adds.

See Also: If There Was A New Fund Backed By Jeff Bezos Offering A 7-9% Target Yield With Monthly Dividends, Would You Invest?

Unsurprisingly, the report of Illicit MELANIA token sales has sparked mixed reactions. While some are unsurprised, others are asking that the first lady be held accountable.

Despite the many concerns, MELANIA still appears to have several thousand holders. Specifically, data from Solana blockchain explorer Solscan shows that the token has over 245,000 holders.