Moving Away From Decentralization? $MELANIA Tokenomics Draws Flak From Crypto

Following the billion-dollar jump of the Official Trump (TRUMP) memecoin, incoming First Lady Melania Trump has also launched her own token, Melania Meme (MELANIA), but an increasing number of cryptocurrency users are displeased with the memecoin's tokenomics.

Tokenomics, basically the economic characteristics of a crypto asset, is a critical aspect of a token as it includes factors such as incentives and distribution – a major aspect that long-term crypto holders take to heart.

In the case of the MELANIA memecoin, which was launched Sunday, many have raised questions about its token distribution, particularly the 35% that will go to team vesting and 20% to the token's treasury.

Is Crypto Moving Away from Decentralization?

Less than 12 hours since launching, MELANIA was up 31.5% and at one point nearly hit $10. It is also challenging a $1.5 billion market cap as of late Sunday. However, the concerns are piling up.

One user who commented on the MELANIA token noted that it seems the crypto community is now "okay with majority insider owned memecoins."

Leonidas, a prominent figure in the crypto space, said it was "really depressing to see mainstream CT (Crypto Twitter) influencers normalizing 90% insider control on memecoins."

The user added that there's "nothing okay" with a launch that was handled in the way the MELANIA memecoin had been, considering the massive token allocation toward the team behind the crypto asset.

In the early years of the memecoin market, tokens were decentralized – meaning the community had major control and influence over the tokens' direction.

With the launch of the TRUMP and MELANIA tokens, which both have massive allocations for the memecoin's teams, a growing number of crypto users believe the memecoin segment is becoming more and more centralized.

$MELANIA Bubble Map Questioned

Bubblemaps, the first supply auditing tool for DeFi tokens and non-fungible tokens (NFTs), revealed that the MELANIA coin's bubble map doesn't match the tokenomics described on its website.

Only 10% was traced back to a Meteora account, while "89% of the supply is still in one wallet and hasn't been split" into the supposed distribution avenues mentioned on the website, which are: Community, Treasury, Team Vesting, and Public Distribution.

Swapping Issues on Day 1

Within just hours since the meme token's launch, there were already concerns with coin swapping.

One user alleged that he had been trying to swap his Solana (SOL) coins for MELANIA. "I just lost all my Solana. I think I got scammed [by] Melania," the user said.

Another user had a similar experience, saying she clicked the link to purchase SOL so she can buy MELANIA coins, but still hasn't received the SOL tokens. "Melania, please do something about this," she said.

Several other users had the same concerns regarding swapping their existing tokens for MELANIA.

Melania Trump has yet to respond to concerns around her official meme token.