Memecoin USDP plummets 99% in just a few hours: An insider scam on Solana?

A new memecoin on Solana named #USDP has become the center of attention after plummeting 99% in less than 6 hours, after reaching a market capitalization of over 150 million USD.

According to data from Dexscreener, wallets linked to the project's insiders quietly dumped their holdings immediately after the token price surged 10 times, thanks to the influx of retail investors. One wallet even turned 300 USD into 300,000 USD in the blink of an eye. Meanwhile, many other investors were left stuck with massive losses.

Signs indicate familiar “bundling” behavior: the internal team received a large amount of tokens through linked wallets, without going through public trading, held the tokens for a short time to create an artificial scarcity effect, and then quickly sold as FOMO peaked.

This trick has appeared multiple times in the market #memecoin , including in the project related to First Lady Melania Trump.

Nevertheless, the SEC has yet to take action to bring memecoins under the legal framework of securities, leaving this market a “juicy target” for manipulators.

The takeaway? Don’t get swept up in the memecoin frenzy just because you see someone making huge profits. Behind the pump could be an entire scenario staged by insiders. #anhbacong