Billions Burned, Governments Accused of Fraud, Investors Left Counting Losses: It's Memecoin Chaos in the Crypto Industry!

Meme Chaos: LIBRA Leads Back to MELANIA!

Memecoin chaos erupts, with both Trump family-linked cryptocurrencies targeted.

Let's take a step back. In the last few hours, we reported the news of fraud allegations against Javier Milei, president of Argentina. In short, Milei allegedly promoted the token that then lost 95% of its valuation, damaging thousands of users.

In itself, the fact is very serious and requires maximum attention. The Argentine authorities are currently investigating. However, in the news linked above, we explained how a worrying connection was identified between LIBRA and MELANIA, the American First Lady's memecoin launched shortly after the arrival of the TRUMP token. It will be interesting to follow the developments in this regard, because such a bridge seems unlikely to be the result of pure chance.

On the memecoin and famous people issue, CZ, former CEO of Binance, also expressed an opinion, arguing that “projects” supported by celebrities can be very risky and easily influenced. At this point, the community wonders whether LIBRA was a scam outright according to the classic pump-and-pump scheme.

Analyzing some on-chain data, we find very interesting clues: some addresses have actually carried out operations with large capital at low prices, unloading the positions in a short time. However, before crying insider trading or other manipulations, we need evidence that, at least for now, we do not have. Everyone is innocent until proven guilty, but we are still raising our antennas!

Are TRUMP and MELANIA scams?

Let's shift focus and think about the two cryptocurrencies promoted by the Trump group and launched about a month ago.

The euphoria was very high, thanks to the perfectly calculated timing that coincided with the inauguration of the 47th president at the White House. We had already reported it and those who followed us know it well: in a few hours, TRUMP was able to collect billions and billions of capitalization, forcefully entering the upper levels of the major cryptocurrencies by market capitalization. The token even reached 70 dollars in value per copy.

MELANIA was less lucky, but still managed to position itself in the top 100 and exceed 12 dollars per piece. Both memecoins are native to the Solana blockchain, which in those hours experienced overwhelming activity, capable of pushing trading volumes skyrocketing.

A month later, what is left? Even though both tokens are still in the top 100, the scenario is bleak and the graphs tell it better than words:

TRUMP situation: those who entered early could still be making money. Unfortunately, those who arrived in the hottest phase, when the token settled at a value well above the approximately 18 dollars of today, 02/17/2025, are making the news.

MELANIA situation: in this case the scenario is even worse, with a current value far from the levels of the first days after the launch.

The 2 billion burned...

Now let's get to the main number: 2 billion. These are the dollars lost by "investors" on TRUMP and MELANIA. Or, another interesting number is 813,200, that is, the wallet addresses that lost money because of these two memecoins.

The data comes from Chainanalysis, commissioned by The New York Times. The research went around the world and was featured in newspapers such as Fortune, Yahoo Finance and Reuters.

In addition, the Trump Organization would have earned tens and tens of millions of dollars from trading commissions. In short: while users bought without knowing what they were getting into, others got rich without any effort, taking advantage of the particular moment.

Even in this context, it is possible to observe operations that are at the very least audacious, highly risky and speculative, with decidedly large capital and of short duration. We will keep monitoring the main channels of the analysis companies for any developments.

We have always emphasized it: memecoins are dangerous assets, especially if you bet on the newly arrived ones and not on the Dogecoin or Shiba Inu of the moment, which at least have a few years behind them and offer a more “protected” environment (within the limits of the type of asset, which remains very volatile).

This does not mean staying away from them completely: if a person has the right propensity for risk, it may be worth allocating a very small percentage of the portfolio for bets of this type, where the enormous danger is justified by equally large earning possibilities. Let's always keep in mind one of the words just written: BET. Whoever wants to proceed, use capital that they can afford to lose entirely; on the contrary, we strongly recommend opting for consolidated cryptocurrencies such as bitcoin.