Melania Trump tokens plummet again, retail investors lose $4.3 billion

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Official cryptocurrency projects related to Melania Trump experienced a dramatic price decline. This rapid market collapse caused retail investors to suffer significant losses.

The Reality of Trump and Melania Token Simultaneous Crash

According to a report by data analysis firm NS3.AI, Trump-related tokens plummeted by 92%, while Melania-related tokens experienced a devastating 99% decline. The misfortune of these two projects shocked the investor community, resulting in a total loss of $4.3 billion among retail holders.

In contrast, insiders managed to make $1.2 billion in profits during this turmoil. This gap highlights structural issues of unequal information access and profit distribution among market participants.

Organized Liquidity Liquidation by Insiders

The decline mechanism of Melania Trump-related tokens is believed to be caused by deliberate strategies by certain stakeholders. Insider groups used decentralized liquidity pools and a one-sided liquidity provision approach to systematically withdraw assets from the market.

This method is more sophisticated than simple selling, involving liquidity manipulation to minimize temporary market impact while securing profits. In other words, insiders quietly cash out before retail investors become aware.

Massive Unlock in 2028 and Potential Risks to Retail Holders

Significant risks still remain. Tokens held by insiders are expected to unlock in 2028, totaling $2.7 billion. If this large-scale release occurs, it could further depress an already strained market.

The Melania Trump token incident highlights vulnerabilities in investor protection within decentralized finance and underscores the potential risks posed by informational advantages held by insiders.

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