- Whales dump Trump Coin and Melania, losing over $14M, signaling weak market confidence and a prolonged bearish trend.
- Insider trading concerns emerge as trader ‘Naseem’ profits millions, allegedly using privileged access and strategic timing.
- Market liquidity drops after an initial surge, with reduced buying pressure hinting at possible accumulation or further decline.
Whale investors are offloading Trump Coin ($TRUMP) and Melania ($MELANIA) at staggering losses, exceeding $14 million. Blockchain tracking platform Spot On Chain highlighted major sell-offs, raising concerns about market sentiment. One whale, “DNTpo,” dumped 13.98 million $MELANIA for 14.32 million $USDC, suffering a $14.9 million loss. Another whale, “EwkH5,” exited a $TRUMP position with a $25.5 million loss after losing 72% in a month.
Sharp Decline After Initial Surge
Both tokens saw upward trends at first, driven by bullish momentum. However, the market became pessimistic after peaking, which resulted in a protracted downward trend. The price action suggests that early investors took profits, causing decreased buying pressure. Besides, the recent whale sell-offs indicate a lack of confidence in future price recovery.
Market data shows a drop in trading volume following the initial surge. During the first breakout, volume soared as buyers rushed in. However, the subsequent downtrend displayed reduced liquidity and selling pressure. Hence, the current consolidation phase might signal accumulation before another potential move.
Source: Official Trump meme
Insider Trading Concerns and Allegations
Meanwhile, blockchain intelligence firm Bubblemaps uncovered an alleged insider trading case involving $TRUMP. A crypto trader, ‘Naseem,’ reportedly made millions by purchasing $TRUMP two hours before its official introduction. Bubblemaps initially suspected foul play but decided to reach out for clarification. Naseem denied having insider knowledge, attributing his timely purchase to keen blockchain observation.
Further investigation revealed that Naseem allegedly paid an $84,000 bribe to process his trade first. He secured $1.09 million worth of $TRUMP in the very first second of trading. This fueled suspicions of privileged access to launch information. However, Naseem defended himself, stating that his team noticed an official Meteora wallet interacting with the TRUMP-USDC pool a day before the launch.
