Melania Memecoin Team Cashes Out $1.5M Amid 21% Price Surge
Team’s Strategic Sell-Off Sparks Market Concerns
The team behind the Official Melania Meme (MELANIA) token has sold $1.5 million worth of tokens over three days, raising eyebrows among investors as the token’s price surged 21% in a week. The sales, executed in two major tranches—$630,000 on April 26 and $930,000 on April 28—suggest a calculated approach that could exert downward pressure on the token’s value, according to blockchain data analyzed by Lookonchain.
A Dollar-Cost Averaging Strategy
Crypto intelligence platform Lookonchain identified the team’s selling as a dollar-cost averaging (DCA) strategy, a method where fixed amounts of an asset are sold at regular intervals to minimize emotional decision-making. In an April 28 post on X, Lookonchain noted:
“The #Melania team didn’t just add or remove liquidity to sell $MELANIA, they also employed a DCA strategy for direct sales!”
This systematic selling has fueled speculation about the team’s confidence in the token’s long-term prospects, especially as MELANIA remains 96% below its all-time high of $13.7, recorded on January 20, 2025, coinciding with US President Donald Trump’s inauguration.
Memecoin Market Dynamics: A Tale of Volatility
Despite the team’s sell-off, MELANIA’s 21% weekly recovery highlights the volatile nature of memecoins, which thrive on hype and sentiment. However, the token’s steep decline from its peak underscores the risks of investing in this speculative asset class.
Meanwhile, the broader memecoin market shows signs of cooling. Pump.fun, a leading memecoin launchpad, saw weekly active wallets drop from 2.85 million in mid-January to 1.44 million by March 31, signaling a potential end to the memecoin supercycle.
Trump Token Faces Bearish Bets
In a related development, a whale investor opened a $1.33 million short position against the Official Trump (TRUMP) memecoin, depositing USDC stablecoins with 2x leverage at $14.7, according to Lookonchain. This position risks liquidation if TRUMP’s price exceeds $21.50, reflecting the high-stakes speculation surrounding Trump-linked tokens.
Memecoins Lose Steam as Narratives Shift
Memecoins ranked as the second-largest crypto investment narrative in Q1 2025, capturing 27% of global investor interest, behind AI tokens at 35%, per a CoinGecko report. However, Bobby Ong, CoinGecko’s co-founder, suggested the market is recycling old trends, stating on April 17:
“Seems like we have yet to see another new narrative emerge and we are still following past quarters’ trends.”
The lack of fresh narratives, coupled with the underperformance of tokens like TRUMP, may signal a broader shift in investor focus.
Investor Takeaways: Proceed with Caution
The Melania memecoin’s rollercoaster ride serves as a stark reminder of the risks and rewards in the memecoin market. While short-term gains are possible, the team’s $1.5 million sell-off and the token’s 96% drop from its peak highlight the volatility and uncertainty that define this sector. Investors are urged to approach memecoins with caution, prioritizing research and risk management.
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