Recent reports indicate a group of cryptocurrency traders managed to deposit nearly $100 million in profits through some oddly-timed transactions, which notably included Melania Trump’s cryptocurrency tokens.
Just moments before Melania Trump announced the launch of her $Melania cryptocurrency, around two dozen digital wallets significantly ramped up their token purchases, resulting in a remarkable $99.6 million gain, according to an investigation by Financial Times.
This trading activity unfolded in just two critical minutes on January 19, right before the token was publicly introduced.
Melania announced the $Melania Coin via a post on Truth Social, shortly before her husband assumed office. This announcement notably boosted visibility and price for the token almost immediately.
Part of the questionable transactions involved traders spending about $2.6 million on tokens just moments before the official announcement.
The profits from these trades were realized rapidly, with an impressive 81% of the purchased coins sold within merely 12 hours post-announcement.
This quick turnover strategy, often employed by cryptocurrency speculators nicknamed “snipers,” relies on insider knowledge to yield substantial returns.
While cryptocurrency transactions are documented on Blockchain Technology—a transparent ledger system—the individuals behind these digital wallets typically remain anonymous.
MemeCoins like $Melania are considered speculative assets, lacking the essential functionality and regulatory oversight typical of conventional securities, which renders them more prone to manipulation.
A particularly notable transaction involved a digital wallet that invested $681,000 in the $Melania token just 64 seconds prior to the public announcement. Within a day, this wallet owner had already raked in a profit of $39 million, with an additional $4.4 million earned over the following three days.
Ultimately, these strategically timed purchases accounted for 16.7 million of the total 200 million Melania tokens available at launch, showcasing the substantial advantages gained by those who acted on early information.
In contrast, no advance purchases were made during the launch of the Trump token—approved by former President Donald Trump—just two days earlier, with the first purchase occurring only after the public announcement, underscoring the irregularities tied to $Melania Coin.
An intriguing aspect of the inquiry traced one early wallet back to Texas-based crypto entrepreneur Hayden Davis, who has previously been linked to the launch of other contentious cryptocurrencies.
Despite this, Davis publicly dismissed any allegations of wrongdoing, asserting, “We’re not making any money from Melania’s team. We didn’t remove liquidity. Zero.”
According to Financial Times, the entity behind the $Melania token—operating independently from the traders involved—has reportedly earned about $64.7 million from sales and trading fees.
Notably, the coin has been under the management of Mkt World LLC, a Delaware-based firm associated with Melania Trump since 2021, but the specific details of its role and profit distribution are unclear.
This outlet has reached out for comments from both the First Lady and Davis.
