Most recent update: [Jan 20, 2025]
What is MELANIA?
The MELANIA meme coin, a new cryptocurrency inspired by Melania Trump, hit the market on the eve of Trump’s inauguration at around 6 p.m. on January 19, 2025. MELANIA is issued on the Solana blockchain, and upon its launch, MELANIA quickly gained significant attention and popularity. The coin was launched at approximately $7 and was valued at $9 by the following morning, with a market cap of $1.65 billion, according to CoinMarketCap. The MELANIA coin follows the successful launch of the $TRUMP, which has reached around $50 and boasts a market cap of about $10 billion.
Who is Behind MELANIA?
The tokens are issued by MKT World LLC, a company based in West Palm Beach, Florida, that was established by Melania Trump in 2021, as reported by Forbes. She has utilized since 2021 for various projects, such as selling portraits of herself during her time as First Lady. According to the Melania Trump meme coin website, 15% of the tokens will be made available to the public, while 35% of the total allotment is allocated to the project's team.
How does it work?
MELANIA functions as a digital collectible that represents support for the values associated with Melania Trump, highlighted by the MELANIA symbol and its related artwork. These tokens aim to encourage community engagement rather than serve as traditional investment opportunities or securities.
As a meme coin, MELANIA leverages the popularity of meme-driven cryptocurrencies, which often gain traction through social media and community interactions. Its value can fluctuate based on public interest and trends.
The MELANIA Token and Tokenomics
MELANIA has a total supply of 1 billion tokens, with 15% allocated to the circulating supply and 35% designated for team vesting, following a specific schedule: an initial lock period of 30 days, after which 10% of the team allocation (3% of the total supply) is unlocked. The remaining 90% will vest linearly over the following months, releasing approximately 2.25% of the total supply each month, with full vesting completed by month 13. The rest of the tokens are distributed among the treasury, liquidity, and community. As of Jan 20, 2025, the market cap for MELANIA amounted to US $819,233,783.
Security
MELANIA is issued on the Solana blockchain. As an SPL token, its security relies on the infrastructure of the Solana network.
Drawbacks and risks
MELANIA comes with several drawbacks and risks. First and foremost, it is highly volatile, with significant price fluctuations that can occur in a short period. Additionally, 85% of the MELANIA token supply is currently controlled by a single wallet, with 55% allocated to the team and treasury. This centralization raises concerns about potential market manipulation and limits transparency in the token's governance.
Meme coins are inherently tied to their associated memes, and in this instance, the celebrity and political connections of the incoming First Lady present challenges for the coin's long-term value. Unlike cryptocurrencies that offer practical applications, MELANIA may find it difficult to sustain stability over time.
Due Diligence
Before listing MELANIA on the VirgoCX Platform, VirgoCX performed due diligence on MELANIA and determined that MELANIA is unlikely to be a security or derivative under Canadian securities legislation. VirgoCX’s analysis includes reviewing publicly available information on the following:
- The creation, governance, and location of MELANIA and/or its primary development team;
- The supply, demand, maturity and liquidity of MELANIA; and
- Legal and regulatory risks associated with MELANIA.
Statutory Rights under Securities Legislation
VirgoCX is offering Crypto Contracts on crypto assets in reliance on a prospectus exemption contained in the exemptive relief decision Re VirgoCX Inc. dated May 30th 2024 (the Decision). Please be aware that the statutory rights in section 130.1 of the Securities Act (Ontario) and, if applicable, similar statutory rights under the securities legislation of each other province and territory in Canada do not apply in respect of the Crypto Fact Sheet to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.
Further Reading
To learn more about the technology behind MELANIA, check out these in-depth resources here:
- The official site of MELANIA
- Coinmarketcap’s overview of MELANIA
- Coingecko’s tokenomics overview of MELANIA
- Coinbase’s overview of MELANIA, along with the relevant news and blogs related to MELANIA.
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