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The developers responsible for a cryptocurrency introduced by US First Lady Melania Trump have been alleged in court filings of executing a market manipulation plot.

Initial Launch and Price Surge

The $MELANIA tokens were made available for a minimal price each on January 19, the day before Donald Trump assumed the presidency.

Alongside the Melania cryptocurrency, Trump himself released his own digital currency just ahead of the swearing-in event.

In a matter of hours, the market value of the $MELANIA token soared to $13.73 per coin.

Sudden Collapse in Price

However, the price plummeted just as rapidly, and currently stands at only about 10 cents – less than one percent of its maximum worth.

Meanwhile, the $TRUMP cryptocurrency achieved a maximum of $45.47 and currently exchanges for $5.79.

Court Claims and Investors' Arguments

The claimants allege that the token's architects planned the maneuver aware that the token's worth would decline sharply.

Mrs. Trump personally is not named in the court case. Investors stated they do not think she was responsible, but accused the crypto companies of using her and other familiar faces as a cover for their fraudulent schemes.

Trading Venue Involvement

In newly filed court papers, investors allege executives of the Meteora digital asset exchange, where the First Lady's token was originally listed, of creating a operation that enabled them to secretly buy significant amounts of the virtual coin.

Their partners then quickly resold these digital currencies, pocketing substantial profits while leading to the price to plummet, as stated in papers submitted in Manhattan federal court.

Broader Context

The allegations regarding $MELANIA have been included in legal proceedings regarding several other cryptocurrencies, which began in April.

Trump-associated entities has according to reports generated more than one billion dollars in pre-tax profits from various cryptocurrency-related products and companies over the previous twelve months.