Key Highlights
- Major MELANIA holders face significant losses, with allegations of insider laundering surfacing.
- The LIBRA and MELANIA tokens have rapidly lost value after initial hype.
- Investor confidence is shaken by rising fraud and rug pulls in the crypto market.
A surge in fraud and rug has shaken investor confidence in the cryptocurrency market. The initial excitement surrounding the launch of Official Trump (TRUMP) and Melania Meme (MELANIA) tokens led to speculative trading. Still, many of these coins have rapidly lost their value.
Similarly, Argentina’s President Javier Milei endorsed the Solana-based LIBRA token, which saw a swift collapse shortly after its debut. Adding to the turmoil, the recent Bybit hack has further worsened the situation.
At times like these, the market remains highly volatile, and another dip could be on the horizon before stability returns. The “Fear-Greed” index currently hovers in the “Extreme Fear” zone, reflecting widespread unease.
In addition, two posts from Lookonchain have sparked discussions within the community. This shed light on recent pump-and-dump schemes.
One post revealed that insiders associated with LIBRA and MELANIA allegedly laundered funds through a questionable meme coin transaction. Meanwhile, another post highlighted the activities of two whales involved with MELANIA and LIBRA, further fueling investor concerns.
LIBRA & MELANIA Teams Accused of Fund Laundering
Recent scrutiny surrounding the memecoins LIBRA and MELANIA has raised serious concerns. The concerns are about potential fund laundering involving insiders connected to political figures.
According to Lookonchain, insiders from the LIBRA and MELANIA teams made a suspicious financial move by purchasing 19,846 SOL. This was worth about $2.76 Million in POPE, a low-cap memecoin.
They then sold these tokens for a mere $24,000, resulting in a staggering loss of $2.73 Million.
The investigation revealed that substantial amounts of SOL were transferred between wallets associated with the LIBRA and MELANIA teams. This led to POPE’s purchase and rapid sales.
Allegations suggest that insiders withdrew millions in trading fees and liquidity pool funds during this process. This scrutiny comes as the U.S. Department of Justice investigates the creation and subsequent collapse of the LIBRA token.
It focuses on potential economic crimes such as fraud and market manipulation. This project has been linked to Argentine President Javier Milei. He has faced accusations of promoting the coin, which saw its price plummet shortly after launch.
This has led to significant scrutiny, with many alleging that Milei may have engaged in insider trading. Meanwhile, MELANIA, a token endorsed by former First Lady Melania Trump, has experienced a dramatic decline.
It dropped over 90% from its initial price. Many experts view this as a potential rug pull, especially after two major investors sold their holdings at a loss.
MELANIA Token Whales Face Major Losses Amid Insider Trading
Per on-chain data, the major holders of the MELANIA token, mainly two prominent whales, have faced substantial losses. On the other hand, insider traders seem to be involved in fund laundering, which is greatly alarming.
The Lookonchain data says one address, DNTpoX…LN2A initially invested $30 Million to acquire 13.97 million MELANIA tokens. However, it later liquidated for just $14.32 million. This resulted in a staggering loss of $15.68 Million.
Similarly, another whale, Gu2bnm…xmni, purchased 6.69 million MELANIA for $10 Million. The whale further sold them for $6.27 Million, incurring a loss of $3.73 Million.
The first whale, DNTpoX…LN2A engaged in multiple transactions, including a significant liquidity removal of $33 Million. This suggested strategic exits rather than mere organic losses.
The second whale, Gu2bnm…xmni, executed a series of trades. They exchanged large amounts of USDC for MELANIA, only to exit at a considerable discount.
Meanwhile, insider traders have been offloading both MELANIA and LIBRA memecoins. On the other hand, they managed to launder significant sums, profiting despite the broader market downturn.
If this trend continues, regulatory scrutiny over memecoins associated with political figures will likely intensify. However, if insiders succeed in concealing transaction trails, they may evade detection.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
