Launched on the Solana blockchain, the TRUMP memecoin has risen to a market valuation of $42 billion, despite claims of insider trading. Retail investors have flocked to the coin despite its quick growth, but on-chain activity has generated serious concerns.
An analytics firm uncovered a crypto wallet with $1 million just four hours before the token’s launch. This wallet purchased $5.9 million in TRUMP tokens during the first minute of trading and then sold $20 million, leaving a staggering $96 million in tokens. The migration of assets to various wallets, now selling on decentralized exchanges (DEXs), has raised concerns about market manipulation.
The structure of the token has also raised concerns. Donald Trump’s Revocable Trust-affiliated corporation CIC Digital has locked up 80 percent of its supply. Critics point to the lack of transparency in liquidity and allocation, with the top ten holders holding more than 89% of the token supply.
Preetam Rao, a Web3 security expert, stated that the timing of the launch and distribution indicate a profit-driven approach. Some speculate about future innovation, while others perceive it as a ploy to exploit retail investors.
Major exchanges like Coinbase and Binance listed the token, which resulted in increased trading activity and traction. Within 24 hours, trading volumes on platforms including Bitget, MEXC, and KuCoin exceeded hundreds of millions of dollars, causing the token’s price to rise by 194%.
The Solana ecosystem also experienced an increase in activity, with Raydium, the largest DEX, earning unprecedented fees and revenue. Tools such as the MEME trading platform GMGN and the Moonshot crypto trading service handled large quantities, adding to the excitement.
Despite the hoopla, skepticism persisted. Some analysts have called the TRUMP memecoin a pump-and-dump scheme, accusing it of being opportunistic and mismatched with the fundamentals of established cryptocurrencies such as Bitcoin.
While debate over the future of TRUMP memecoin persists, it remains a divisive emblem of the fickle nature of cryptocurrency markets.
