Debate Stirred by the Release of 30 Million MELANIA Tokens: Revolutionary Move or Speculative Gamble?
While memecoins often thrive on hype and community engagement, it is the underlying tokenomics that ultimately dictate their value. The upcoming token release of MELANIA is poised to test this principle like never before.
Scheduled between 19th and 20th February, the team plans to unlock 3% of the total supply in the initial month – a staggering 30 million MELANIA tokens valued at $39 million.
Subsequently, in the following months, a monthly release of 2.25% is planned, equating to 22.5 million MELANIA tokens. This sequence sets the stage for significant market movements.
Analysis of Supply and Demand Dynamics
As of the latest data, there are 487.31 million MELANIA coins in circulation, each priced at $1.29, resulting in a market capitalization of $629.4 million. With a maximum supply limit of 1 billion coins, the tokenomics of MELANIA appear positioned for substantial future expansion.
Unlike Dogecoin, which has already saturated the market with its entire 148.08 billion coins, MELANIA’s gradual release approach ensures a managed circulation of tokens.
Despite the excitement, media frenzy, and endorsements from celebrities, DOGE is yet to reach the $1 mark. The developers of MELANIA seem keen on avoiding similar inflation challenges.
The critical question remains – can this strategy prove successful, particularly when the memecoin has already experienced a substantial 90% dip in its market value?
Evaluating the Demand Factors of MELANIA
Upon its debut, MELANIA surged to $13.73, dominating social interaction metrics, though ultimately witnessing a minor 0.08% decline.
The selling pressure has been constant since then, underlining the high-risk, high-reward nature of memecoins. Fast forward a month, and MELANIA has plummeted by 90%, wiping out approximately $1.5 billion in valuation.
Nonetheless, a ray of hope emerges. Open Interest (OI) has increased by 22%, and Futures volume has spiked by 108.09% – indicating that traders remain willing to venture for quick gains.
Yet, with its trading volume dipping from $4.20 billion during launch to a mere $49 million presently, most initial profits have dissipated. Moreover, the sentiment of holding onto assets has significantly waned.
If the demand does not revive soon, the inflationary pressure from the release of MELANIA tokens could precipitate a notable decline in value. This scenario might trigger a liquidity crunch, potentially exposing the memecoin to market manipulation.