The cryptocurrency world has witnessed numerous tokens come and go, supported by various celebrities, but a specific token has been making some ripples in the water recently—$MELANIA, a token associated with Melania Trump.
While the project garners more and more attention, investors excitedly await a major upcoming event—the first phase of unlocking the token, which will take place just a few short days from now, between February 19 and 20, 2025. At that time, a total of 3% of the $MELANIA tokens will be unlocked, amounting to a substantial $39 million at current market valuations.
The starting unlock is just the beginning of a release schedule—the first of many set to occur over the next 13 months—that has been laid out with the precision of a military operation. The plan with the $MELANIA project is to let the market absorb the new tokens in a controlled manner, so that when the team pumps a fresh batch of tokens into the marketplace, the buyers will not gag on them. By this reasoning, the forthcoming unlock should fascinate observers; it will be the first developmental event in the life of the project that will impact the token’s price—up or down.
Unlocking Schedule and Its Impact on the MarketThe tokens allocated to the $MELANIA team have a lock-up period of 30 days from the initial offering. That lock-up period is set to expire between February 19 and 20. A total of 30 million tokens representing 3% of the total $MELANIA supply will be unlocked. At the current market value, these 30 million tokens amount to approximately $39 million and are expected to trigger some dramatic movements in the price of the token. Investors will be watching closely to see what happens next. Will the price of the token go up or down? Will the project team and early backers holding a large portion of the unlocked supply exert any influence over the token’s price? These questions loom large in the minds of $MELANIA investors and could soon be answered definitively one way or another.
The unlocking process goes further. Following the release of 3% of the total supply, the token schedule for $MELANIA calls for 2.25% to be unlocked each month for the next 12 months. This allows for a total of 30% of the supply to be unlocked over the next 13 months. It is, in its own way, a “gradual distribution” that is intended to prevent “market flooding” while also maintaining a certain price level. The 13-month release schedule calls for 22.5 million tokens to be released each month for the next 12 months after the initial release, which amounts to 270 million tokens released over this period.
Even though the long-term, gradual-release mechanism may ease the immediate selling pressure, it is difficult to avoid the appearance of a large number of token holders suddenly deciding to cash out, potentially at a big loss, after price drops that may happen right after the first unlock. Following that logic, cashing out could lead to downward pressure on the price of the token.
Investor Sentiment and SpeculationLike many celebrity-endorsed projects, $MELANIA has generated quite a bit of guesswork. What we’re really trying to see is what effect the unlocking of these tokens will have on the price of $MELANIA, and we’re not alone in our curiosity. Speculation surrounding celebrity brands is a cottage industry in itself, and a lot of the work that gets done in this space is to try to figure out the effect a brand might have on a given project.
Some market participants believe that the gradual unlock over the next year could yield steady growth for $MELANIA. The team behind the token is unlocking it at a controlled rate, providing the market with opportunities to absorb the new supply. Near the end of this push, we may see a slight dump in price if early investors and insiders decide to sell off their now-unlocked tokens. This scenario would give us a pretty good price range to expect for the weekend and a pretty good warning sign to look for if you’re a potential short-term trader.
The $MELANIA token’s success will depend in part on the market’s mood over celebrity coins, which have not yet won over the skeptics in the traditional investment world. Melania Trump’s backing is, to some, a strong enough indicator of potential upside to make the project worth a closer look. But for many traditional investors, coins and tokens driven by the celebrity of the moment look like what they are: another way to say, “Hey, buy this, and good luck. We can’t really say what it’s worth.”
Looking Ahead: What’s Next for $MELANIA?With the inaugural token unlock just around the corner, anticipation is building around $MELANIA and what it will do next. Will it follow the well-lit path toward what the economy is calling “cryptos for the commons,” those digital currencies with a mission (like the one for which Melania Trump is so gung ho)? Will it surge at first, then tumble like so many others have, or will it find its place—if not under heaven, then at least among the thousands of other tokens in the crowded cryptocurrency market—doing a kind of digital good that earns it a little omzet in the long run?
That question will probably be answered in the next few months, depending on how well the project can maintain investor confidence through the unlock process and beyond. The $MELANIA team must continue to deliver and even over-deliver on their promises if they are to build the kind of trust that makes a community solid. This year, they will release 30% of the total tokens, which gives them space and time to manage that release in a way that doesn’t “flood the market,” in the words of their chief architect, Daniele Sestagalli.
Proceeding with the given material, investors will watch very closely as February approaches. How the token performs once 30 million tokens are released will probably set the tone for the rest of the year for $MELANIA. Whether this is the beginning of a strong upward trend, or instead a volatile ride, is unclear. For now, though, all eyes are on the token and its performance during this critical time.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!
Image Source: gioiak2/123RF // Image Effects by Colorcinch
The post $MELANIA Token Unlock Begins: Market Awaits Impact as 30 Million Tokens Set to be Released appeared first on The Merkle News.