Whales Dump Melania Memecoin At Heavy Losses As Market Meltdown Wipes Out $12 Billion In Investor Wealth

Large investors were dumping Official Melania (CRYPTO: MELANIA) at massive losses, as the meme coin launched by First Lady Melania Trump traded 93% below its all-time high.

What happened: Two notable loss-making whale transactions were discovered by on-chain data tracking firm Lookonchain on Tuesday

One of the investors purchased 13.97 million MELANIA tokens for 30 million USD Coin (CRYPTO: USDC) a month ago, only to sell the stash for 14.32 million USDC on Monday, experiencing a loss of $15.68 million.

The other whale bagged 6.69 million MELANIAs for 10 million USDC more than three weeks ago and sold them for 6.27 million USDC over the past two days, losing $3.73 million. 

The sell-offs by whales, known for being large hoarders of cryptocurrencies, suggested a weaker long-term sentiment and a bearish forecast for the meme coin.

Price Action: At the time of writing, MELANIA traded at $0.9210, down 0.59% in the last 24 hours and over 93% since the top of $13.73 shortly after its launch last month, according to data from Benzinga Pro. 

Just for additional context, about $12.8 billion worth of the coin's fully diluted capitalization has been eroded since the peak.

See Also: GameStop-Themed Cryptos Soar After Vivek Ramaswamy Co-Founded Firm’s CEO Urges Bitcoin Investment: Graduate From Being ‘Meme Stock’ To Sector Leader

Why It Matters: The Solana (CRYPTO: SOL)-based meme coin was launched just before President Donald Trump's presidential inauguration, much like the Official Trump (CRYPTO: TRUMP) token. 

TRUMP has also witnessed a sharp drawdown, plummeting 82% from its record highs. 

MELANIA was drawn into a larger controversy when on-chain sleuths alleged a potential link between the token's creators and the scam-tainted LIBRA meme coin promoted by Argentine President Javier Milei.

Read Next: 

• Bybit Hacker Launders Nearly 30% Of Hacked $1.4 Billion ETH In 5 Days — Needs Only 8-10 Days To Finish The Job

Photo courtesy: Shutterstock