The crypto market has been rocked by a new controversy involving the MELANIA, a digital asset associated based on First Lady Melania Trump.
Launched amid significant fanfare, the token’s rapid rise and subsequent fall have raised serious concerns about manipulation.
Adding fuel to the fire, Hayden Mark Davis, the creator of the LIBRA cryptocurrency, has admitted to engaging in token sniping, a practice that gives insiders an unfair advantage. This revelation has ignited debates about the ethics of memecoin trading and the risks facing retail investors.
MELANIA Memecoin’s Meteoric Rise and Fall
The MELANIA memecoin debuted on January 19, 2025, coinciding with Donald Trump’s inauguration. It quickly gained traction, reaching a staggering $4 billion market cap in just hours. The price skyrocketed, drawing in both crypto traders and Trump supporters eager to invest.
However, blockchain analysts soon uncovered troubling data—90% of the token’s supply was controlled by a single wallet. This revelation suggests that insiders manipulated the price surge.
As speculation swirled, Hayden Mark Davis admitted to participating in token sniping during MELANIA’s launch. He described the memecoin as an “experiment” that spiraled out of control. His admission confirmed suspicions that insiders had taken advantage of the hype to profit at the expense of retail investors.
Investigations and Regulatory Concerns
Following these revelations, calls for regulatory scrutiny over the MELANIA memecoin have increased. Although the token is a simple memecoin, its ties to Melania Trump’s brand and potential political influence have raised questions about whether such projects should be subject to stricter oversight.
Regulators in the U.S. and other jurisdictions are now exploring whether insider trading laws or securities regulations should apply to tokens that rely heavily on celebrity endorsements and centralized ownership structures. If further evidence of fraudulent activity emerges, legal action could be taken against those responsible for manipulating the market.
What is Token Sniping?
Token sniping is a controversial strategy in which bots or insiders buy large amounts of a new cryptocurrency at launch before regular investors have a fair chance. By securing early access, these individuals capitalize on price surges and often dump their holdings for massive profits, leaving unsuspecting investors with worthless tokens.
