Former U.S. President Trump recently announced that investors holding his meme coin $TRUMP could be invited to a Washington dinner, and threw out gimmicks like 'the first 25 can enjoy a day trip to the White House,' which directly boosted the token's market value by over $200 million. However, market controversies erupted: Democratic lawmakers criticized him for deeply tying cryptocurrency to political influence, while several Web3 analysts pointed out three major 'money-losing pitfalls' hidden within the project.
Pitfall One: The Dinner Becomes a 'Schrödinger's Dinner'
Despite high-profile promises in the promotion of 'dining with Trump,' the official guidelines clearly state that 'the President may be absent due to scheduling conflicts,' and the event content can be adjusted at any time. If Trump cancels, the project team only offers a limited NFT airdrop as compensation. Web3 marketing experts pointed out that this type of operation is similar to the 'celebrity endorsement, fans foot the bill' tactics during the 2021 NFT bubble—third-party brokerage companies use celebrity names to attract traffic, but the actual fulfillment rate is concerning. Ironically, some users found that the criteria for receiving dinner tickets were not based on holdings, but rather 'targeted invitations' from the project team, reducing ordinary investors to mere traffic tools.
Pitfall Two: Insider Trading Rampant, Exchanges 'Controlling the Market' to Harvest Chives
$TRUMP coin saw 'mysterious accounts' becoming wealthy on its first day of launch: Blockchain explorers show that, aside from the Trump family holding 80% of the tokens, half of the top ten holding addresses belong to exchange hot wallets, and there are reports that the well-known market maker Wintermute is deeply involved in over-the-counter trading. This means ordinary users have to compete alongside institutional players who control massive amounts of chips. Furthermore, it is worth noting that Huobi founder Sun Yuchen is suspected of entering early through a cold wallet, directly ranking among the top holdings, further solidifying the speculation of 'exchange control.' Analysts bluntly stated: 'This is not a decentralized project at all, but a wealth harvesting machine written in code by a few people.'
Pitfall Three: The Harvest Countdown Begins, SEC 'Letting It Slide'
Financial analysts dissect the operational trajectory of the $TRUMP coin:
Inducement Period: Attracting retail investors with gimmicks like the dinner and a trip to the White House;
Control Period: Exchanges and market makers boost leaderboard rankings through over-the-counter trading, creating the illusion of 'thousands rushing to buy';
Harvest Period: The price peak is expected to occur from May 8 to 15 (1-2 weeks before the event), with the final harvesting potentially starting from May 5 to 12.
It is important to be cautious: the U.S. SEC has not yet included this token in its regulation, while the Trump team has been accused multiple times of 'using cryptocurrency for financing' and suspected of securities fraud. Historical data shows that its NFT series issued in 2022 plummeted by 97% from its peak, leading to heavy losses for investors.
Risk Warning: The $TRUMP coin is essentially a 'non-regulated meme coin' packaged with the political IP of the Trump family. Ordinary investors blindly following the trend are highly likely to fall into the dilemma of 'buying at high prices, no regulatory safety net, and the project team running away at any time.' The crypto market has no 'presidential halo for protection,' only the eternal struggle between the sickle and the chives.
