U.S. First Lady Melania Trump has resurfaced in the crypto space, promoting her Solana-based memecoin, MelaniaMeme (MELANIA), with a slick AI-generated video — but questions over millions in token sales by project insiders continue to overshadow the venture.

In a Thursday post on X (formerly Twitter), Melania Trump called the memecoin a step “into the future,” tagging the token’s official account. The promotional push marked her first public mention of MELANIA in nearly 10 months, during which the token has been battered by controversy and a massive price collapse.

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Source: Melania Trump

$10 Million in Alleged Insider Token Sales

While the new AI video rekindled attention, blockchain analysts say it ignored the elephant in the room: the project’s handling of community funds.

Blockchain data firm Bubblemaps claimed that wallets linked to the MELANIA team had sold off roughly $10 million worth of tokens, with little to no communication to investors. On April 7, insiders allegedly offloaded around $30 million in community-owned funds without explanation.

Further analysis by Lookonchain showed additional team sales of $1.5 million between April 25–28, coinciding with a 21% price rally. The pattern resembled dollar-cost averaging (DCA) sell strategies — typically used by investors to manage exposure over time, but here raising concerns of systematic insider profit-taking.

Neither the Trump campaign nor the First Lady’s office has issued any statements addressing the allegations.

MELANIA Token Down 98% From Peak

The memecoin’s market performance has done little to inspire confidence. After a hyped launch in January, MELANIA reached an all-time high of $13.73, only to plummet 98%. At the time of writing, it trades at just $0.18, according to CoinMarketCap data.

Adding to the project’s credibility issues, MELANIA was co-created by Hayden Davis, one of the figures behind the failed Libra (LIBRA) token. That project collapsed earlier this year after eight insider wallets reportedly cashed out $107 million, erasing a $4 billion market cap in hours.

Davis also launched a Wolf of Wall Street-themed memecoin in March, which insiders controlled with over 80% supply. It too crashed spectacularly, losing 99% of its value in just two days.

MELANIA/USD, all-time chart. Source: CoinMarketCap.com

Memecoins, Politics, and Speculation

The MELANIA token’s saga highlights the volatile intersection of memecoin speculation, celebrity branding, and politics. While Melania Trump’s backing keeps the token in the spotlight, analysts warn that without transparency and stronger governance, such projects risk being little more than short-lived cash grabs.

For now, Melania’s AI-powered promo may boost visibility — but whether it restores investor confidence in a coin already battered by allegations and price collapse remains highly uncertain.