The Rapid Decline of Trump and Melania Tokens Causes Million-Dollar Losses

The cryptocurrency market landscape has experienced a significant decline in the official tokens associated with Trump and Melania, triggering a massive loss scenario for retail investors. According to data from NS3.AI, small investors are estimated to have incurred losses of approximately $4.3 billion, while informants have capitalized on this situation, making gains close to $1.2 billion. This event illustrates the inherent risk dynamics in political-themed and meme tokens markets.

Catastrophic Drop: Magnitude of Impact on Investors

The decline of these tokens has reached historic proportions. The TRUMP token has experienced a cumulative drop of 92%, while MELANIA has suffered an even more severe decrease of 99%. In the last 24 hours (as of February 27, 2026), TRUMP shows a variation of -2.90%, while MELANIA has declined an additional -3.21%.

These figures reflect the extreme volatility characteristic of these assets. Retail investors, who entered expecting quick profits, have been caught in a widespread collapse that has nearly wiped out their initial investments. The persistent decline has created an environment of panic and reassessment of positions in the sector.

Liquidation Strategies: How Informants Made $1.2 Billion

Behind this rapid decline is a systematic liquidity distribution operation. Informants have exploited a unilateral liquidity provision strategy to gradually sell their holdings through decentralized pools. This mechanism, although technically legal in decentralized finance, has allowed these actors to offload their positions while prices still maintained some value.

The gains obtained by informants ($1.2 billion) come directly from the losses of retail investors who bought at highs or during the initial drop, creating a negative redistribution effect. This dynamic highlights informational asymmetry and the risks associated with quick-launch tokens without sufficient oversight of capital structures.

Upcoming Threats: Token Unlocks and Future Risks

Pressure on these tokens could intensify even further in the near future. It is estimated that tokens locked by informants worth $2.7 billion are scheduled to unlock in 2028. When these funds are released, they could face new waves of selling that would amplify the already experienced decline.

This scenario raises questions about the sustainability of these assets and warns investors about the systemic risks inherent in political-themed tokens. Market analysis suggests that the decline could continue under pressure from these future events, making recovery an uncertain and prolonged path for current holders.