Melania Trump Cryptocurrency, MELANIA/USD, Surges 6.29% as a Whale Opens 5x Leveraged Long Position

The official cryptocurrency of First Lady Melania Trump jumped 6.29% over the previous day, while its trading volume more than tripled to $35 million.

A massive five-fold leveraged long position has been opened on Melania Trump's official cryptocurrency, Melania MELANIA/USD.

What Happened: The official token of the former First Lady saw its price surge by 6.29% over the previous day, pushing its trading volume up over 300% to $35 million.

At press time, MELANIA was trading at $0.69135, while Bitcoin BTC/USD was down 0.31%, Ethereum ETH/USD rose 1.06%, and Dogecoin DOGE/USD traded lower by 1.72% in the 24-hour period.

An influential trader, known for taking a 40x leveraged position on Bitcoin earlier this year, has now opened a 5x leveraged trade betting on Melania's token to rise.

The position, valued at $2.5 million, was entered with an entry price of $0.69135, as per data from the decentralized perpetual trading platform Hyperliquid.

The trader has already made an unrealized profit of over $105,000 since opening the long.

The trader is part of a small group of crypto derivatives traders who prefer to use leverage to amplify their returns and set up highly visible positions in the market.

Leverage trading allows crypto traders to open larger positions using borrowed capital, which can potentially amplify both profits and losses.

The high-leverage positions are usually set up on perpetual contracts, which are essentially futures contracts that can be held indefinitely.

The positions are typically closed when the trader decides to take profits or when their position is liquidated due to a lack of sufficient funds to cover potential losses.

Why It Matters: Melania Trump's cryptocurrency has lost a significant portion of its value since its initial launch.

The token, which was initially priced at $15, had reached a high of $13.73 shortly after its launch in January. However, the token has since collapsed by 95%, reducing its fully diluted capitalization to $724 million, down from a peak of $13 billion.

The token is expected to be distributed to the public in the fourth quarter of 2024, and the Hyperliquid platform is currently facilitating the trading of the token.

The token will be created on the Solana blockchain, and a total of 10 billion tokens will be issued. The tokens will be sold in batches of 2.5 billion at a time, with the starting price for the first batch set at $0.8.

See More: Best Cryptocurrency Scanners

The project aims to integrate AI and blockchain technology to develop products and services that will empower women and children around the world. A portion of the project's proceeds will be donated to support philanthropic initiatives focused on empowering women and children.