Cryptocurrency

A 98% Crash and a Pump & Dump

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A 98% Crash and a Pump & Dump

The Melania Trump meme coin crash highlights the dangers of “pump and dump”
schemes in the crypto world.

It was supposed to be a big deal: Melania Trump’s meme coin (site), launched with the promise of
transforming the meme coin market, caught fire earlier this year. But like a
firework bursting in the sky, it fizzled out just as quickly. Fast forward to
now, and the coin is down 98%
from its highs in January 2025.

At the time of writing, the Melania meme coin has collapsed to the
point where investors are left scratching their heads. Currently valued at
$0.21, the coin initially launched at just shy of $8.5.

At the start of 2025, the coin made waves with celebrity endorsements
and a heavy social media presence. Many investors jumped in hoping it would
repeat the meteoric rise of other meme coins like Dogecoin or Shiba Inu.
Instead, it saw a swift crash, leaving many with substantial losses.

The coin’s dramatic plunge has shocked its once-enthusiastic community,
who now find themselves watching their investments sink into oblivion, though
seasoned meme coin watchers might not be so surprised. The narrative was
familiar: a viral marketing campaign, wild speculation, and a spike in
volume—but in the end, the same fate as most meme coins: disappointment.

How Did It All Go So Wrong?

The Melania meme coin wasn’t exactly built for the long haul. Meme
coins, by their very nature, are prone to volatile swings. Unlike established
cryptocurrencies with real-world use cases, meme coins are largely driven by
hype, speculation, and the ever-changing whims of social media influencers.

The coin’s value has collapsed since launching in January (screenshot 08/08/25)

But while the dramatic crash of the coin left many investors high and
dry, it’s far from an unusual story in the world of cryptocurrencies. This is
what happens when a token is essentially built on the foundation of a meme, a
joke, and sustained by a community that can quickly lose interest.

As with all speculative bubbles, once the hype dies down, prices
plummet. It’s a familiar cycle, and the Melania meme coin was no different.
However, the real story may be deeper, especially when we take a look at the
actions of the whales.

A Migration of Whales

In the case of Melania’s meme coin, it wasn’t just the market’s
volatility that caused the crash. A significant part of the downturn is tied to
the behavior of so-called “whales,” large investors with the capacity
to manipulate the market. The
whales cashed out in spring, taking profits while the smaller traders were
left to deal with the fallout. In other words, the whales made their move,
unloading vast amounts of the token and securing their profit before the price
crash became inevitable.

This phenomenon—where larger investors manipulate the market by buying
in low and selling high—is often referred to as a “pump
and dump” scheme. Many around the coin created artificial demand by
hyping it, making it look like a legitimate investment opportunity. As soon as
enough smaller investors were onboard, they cashed out, leaving the newcomers
holding worthless tokens.

In a typical pump and dump play the price is artificially inflated,
often through coordinated social media activity or celebrity endorsements,
until it reaches a peak. Once the whales sell off their holdings, the price
plummets, leaving the less-informed investors stuck with worthless assets.

The All-Too-Familiar Pattern

The Melania meme coin may be just another chapter in the long history of
pump and dump schemes, but it serves as a sharp reminder of the risks involved
in trading speculative tokens. These coins often operate like a casino, with
outcomes driven by hype and a lack of underlying value.

The “Updates” section of melaniameme.com, with one “update” from January (screenshot)

Investors looking to enter the market for meme coins often get swept up
in the enthusiasm and the fear of missing out (FOMO). But without the stability
of fundamentals or real-world application, it’s all too easy to get burned. The
fate of Melania Trump’s meme coin serves as a cautionary tale for anyone
considering jumping into the meme coin frenzy: it’s not just about luck; it’s
about being aware of the risks posed by larger investors who hold the power to
send prices spiraling.

What Happens Next?

While Melania Trump’s meme coin has been dealt a heavy blow, its crash
isn’t necessarily the end of the road for the world of meme coins. Investors
may have learned some valuable lessons about the volatility of these tokens,
but the space remains ripe for similar hype-driven ventures. However, it must
be noted that the Securities and Exchange Commission (SEC) does
not view meme coins as securities, meaning that there’s less regulation,
and ultimately less protection for buyers.

For those holding Melania meme coins, the aftermath will likely mean a
painful realization about the nature of speculative investments. Whether the
coin ever recovers—or becomes a cautionary tale—remains to be seen.

This crash wasn’t an isolated event—it’s part of a broader pattern of
volatility seen in the meme coin world. As always, the big players cash out,
and the rest are left to pick up the pieces. If you’re thinking about jumping
into meme coins, just remember: you’re playing with fire.

For more stories making waves in finance and tech, visit our Trending pages.

The Melania Trump meme coin crash highlights the dangers of “pump and dump”
schemes in the crypto world.

It was supposed to be a big deal: Melania Trump’s meme coin (site), launched with the promise of
transforming the meme coin market, caught fire earlier this year. But like a
firework bursting in the sky, it fizzled out just as quickly. Fast forward to
now, and the coin is down 98%
from its highs in January 2025.

At the time of writing, the Melania meme coin has collapsed to the
point where investors are left scratching their heads. Currently valued at
$0.21, the coin initially launched at just shy of $8.5.

At the start of 2025, the coin made waves with celebrity endorsements
and a heavy social media presence. Many investors jumped in hoping it would
repeat the meteoric rise of other meme coins like Dogecoin or Shiba Inu.
Instead, it saw a swift crash, leaving many with substantial losses.

The coin’s dramatic plunge has shocked its once-enthusiastic community,
who now find themselves watching their investments sink into oblivion, though
seasoned meme coin watchers might not be so surprised. The narrative was
familiar: a viral marketing campaign, wild speculation, and a spike in
volume—but in the end, the same fate as most meme coins: disappointment.

How Did It All Go So Wrong?

The Melania meme coin wasn’t exactly built for the long haul. Meme
coins, by their very nature, are prone to volatile swings. Unlike established
cryptocurrencies with real-world use cases, meme coins are largely driven by
hype, speculation, and the ever-changing whims of social media influencers.

The coin’s value has collapsed since launching in January (screenshot 08/08/25)

But while the dramatic crash of the coin left many investors high and
dry, it’s far from an unusual story in the world of cryptocurrencies. This is
what happens when a token is essentially built on the foundation of a meme, a
joke, and sustained by a community that can quickly lose interest.

As with all speculative bubbles, once the hype dies down, prices
plummet. It’s a familiar cycle, and the Melania meme coin was no different.
However, the real story may be deeper, especially when we take a look at the
actions of the whales.

A Migration of Whales

In the case of Melania’s meme coin, it wasn’t just the market’s
volatility that caused the crash. A significant part of the downturn is tied to
the behavior of so-called “whales,” large investors with the capacity
to manipulate the market. The
whales cashed out in spring, taking profits while the smaller traders were
left to deal with the fallout. In other words, the whales made their move,
unloading vast amounts of the token and securing their profit before the price
crash became inevitable.

This phenomenon—where larger investors manipulate the market by buying
in low and selling high—is often referred to as a “pump
and dump” scheme. Many around the coin created artificial demand by
hyping it, making it look like a legitimate investment opportunity. As soon as
enough smaller investors were onboard, they cashed out, leaving the newcomers
holding worthless tokens.

In a typical pump and dump play the price is artificially inflated,
often through coordinated social media activity or celebrity endorsements,
until it reaches a peak. Once the whales sell off their holdings, the price
plummets, leaving the less-informed investors stuck with worthless assets.

The All-Too-Familiar Pattern

The Melania meme coin may be just another chapter in the long history of
pump and dump schemes, but it serves as a sharp reminder of the risks involved
in trading speculative tokens. These coins often operate like a casino, with
outcomes driven by hype and a lack of underlying value.

The “Updates” section of melaniameme.com, with one “update” from January (screenshot)

Investors looking to enter the market for meme coins often get swept up
in the enthusiasm and the fear of missing out (FOMO). But without the stability
of fundamentals or real-world application, it’s all too easy to get burned. The
fate of Melania Trump’s meme coin serves as a cautionary tale for anyone
considering jumping into the meme coin frenzy: it’s not just about luck; it’s
about being aware of the risks posed by larger investors who hold the power to
send prices spiraling.

What Happens Next?

While Melania Trump’s meme coin has been dealt a heavy blow, its crash
isn’t necessarily the end of the road for the world of meme coins. Investors
may have learned some valuable lessons about the volatility of these tokens,
but the space remains ripe for similar hype-driven ventures. However, it must
be noted that the Securities and Exchange Commission (SEC) does
not view meme coins as securities, meaning that there’s less regulation,
and ultimately less protection for buyers.

For those holding Melania meme coins, the aftermath will likely mean a
painful realization about the nature of speculative investments. Whether the
coin ever recovers—or becomes a cautionary tale—remains to be seen.

This crash wasn’t an isolated event—it’s part of a broader pattern of
volatility seen in the meme coin world. As always, the big players cash out,
and the rest are left to pick up the pieces. If you’re thinking about jumping
into meme coins, just remember: you’re playing with fire.

For more stories making waves in finance and tech, visit our Trending pages.

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