Recently, the $Trump Meme coin officially launched by Trump has attracted widespread attention in the market. However, after an in-depth analysis of its operation model and distribution mechanism after its launch, this project makes people feel disappointed and wary. The following is an analysis of the key issues and reasons of the $Trump Meme coin, reminding investors to think carefully before participating.
Project highlights: rapid growth and market popularity
- Rapid rise: $TRUMP has only been online for a few hours, and its FDV (fully diluted valuation) has soared to $13 billion, becoming
The token with the highest market value in the Solana ecosystem even exceeds $BONK .
- User scale: In a short period of time, it attracted more than 200,000 coin holders, creating the fastest coin holding growth record since Bitcoin.
- High fees: Over $30 million in transaction fees were generated within just a few hours after launch, demonstrating huge market activity
Degrees.
These data may seem impressive on the surface, but upon in-depth analysis, many problems are revealed.
Problem 1: The allocation mechanism is opaque and highly centralized
1. Initial supply concentration:
- The project creator address (5e2qRc1DNEXmyxP8qwPwJhRWjef7usLyi7v5xjqLr5G7) holds $238M of $TRUMP, or about 1.8% of the total supply.
- 80% of token supply is transferred to a single wallet instead of being locked up in a smart contract.
2. Initial liquidity abnormality:
- The liquidity pool is established using only $TRUMP tokens, without adding conventional stable assets such as $SOL or $USDC, resulting in high liquidity risk.
- More than 98% of liquidity is not locked, involving an amount of up to US$400 million, and there is a possibility of withdrawal at any time.
Problem 2: Insufficient decentralization and obvious signs of manipulation
- Allocation issue: The so-called “public allocation” is more like a private placement, with only 10% of the supply allocated to the liquidity pool and the public, which cannot reflect fairness.
- Complex internal relationships:
- $TRUMP’s issuer, CIC Digital, is an affiliate of the Trump Organization and is closely tied to its other cryptocurrency projects such as Meme cards.
- Insiders’ direct involvement in projects increases the possibility of market manipulation and insider trading.
Problem 3: Long-term development prospects are worrying
1. High selling pressure risk:
Even assuming that 80% of the supply is “locked”, with only 20% of tokens currently circulating in the market, this setup is likely to lead to long-term high selling pressure in the market.
2. Lack of technical support and community consensus:*
As a Meme coin, $TRUMP has not demonstrated any practical application value or technological innovation and relies entirely on market popularity and celebrity effects.
in conclusion:
Although the launch of $Trump coin quickly attracted market attention, its centralized distribution and opaque liquidity mechanism
And the possibility of internal related transactions makes people question its true purpose.
For investors, decentralization, transparency and fairness are the core of crypto projects, and $TRUMP seems to have failed in all these aspects. If no improvement is made in the mechanism, this project is likely to be just another speculative game that takes advantage of retail investor sentiment to make profits.
