MELANIA Token Crashes 99.99%: Pump-and-Dump Scandal Ignites Lawsuits in 2025

MELANIA token, a meme coin promoted as endorsed by former First Lady Melania Trump, has imploded, plunging 99.99% from its $13.5 million peak to mere pennies. The collapse, triggered by allegations of a pump-and-dump scheme, has sparked a class-action lawsuit accusing creators of manipulating prices through fake endorsements and insider dumps.

The Scandal: Endorsement Hype to Rug Pull

Launched in September 2025, MELANIA rode Trump family buzz to a $13.5 million market cap, fueled by social media hype and “official” endorsements. Investors poured in, but on-chain data from Etherscan revealed insiders controlling 70% of supply, dumping 80% of holdings at peaks for $10 million+ profits. The lawsuit, filed in New York federal court, claims fraud, with plaintiffs alleging “pump-and-dump” tactics via coordinated buys and celebrity tie-ins. Token creators, linked to anonymous wallets, vanished post-crash, leaving holders with worthless assets.

• Price Drop: 99.99% loss; from $13.5M to under $1,000 cap.
• Market Impact: $10M+ insider profits; 90% bearish sentiment.
• Legal Front: Class-action demands refunds; SEC probe rumors.

Trading Guide: Caution in Meme Volatility

Event-driven traders: Observe only—heat fades with volume contraction, ready for reversals. Reference recent mid-range $0.0001 support; avoid entries. If $0.0002 rebounds without volume, take quick profits. Aggressive styles: 10x leverage shorts below $0.00015, stops at $0.0002 (20% risk), but position under 5%. Meme dumps signal fear; wait for audits or recoveries.

2025 Meme Lessons: Hype vs. Reality

MELANIA’s fall echoes 2024’s rug pulls, where hype outpaces utility, wiping $2 billion in meme value. In 2025’s DeFi surge, it underscores DYOR and audits for resilience.

In summary, MELANIA’s 99.99% crash exposes meme coin risks, urging caution amid 2025’s volatile DeFi era.