In the world of crypto, controversies are not new, but the launch of Donald Trump’s $TRUMP memecoin has sparked what some are calling the biggest rugpull in
history. With over $200 million reportedly cashed out and shocking on-chain data,
this event has left the community divided. Here’s everything you need to know
and how to protect yourself.
Background
Two days ago, Donald Trump, the self-proclaimed pro-crypto president, launched
his own memecoin, $TRUMP. The coin quickly made headlines, hitting an
astonishing $70 billion market cap within 24 hours. While many dismissed it as just another scam, the numbers were hard to ignore.
Developer Team Activity
The development team behind $TRUMP pushed the token aggressively, leveraging
the hype surrounding Trump’s inauguration. Reports suggest they spent billions to
pump the token’s value over two days. However, as the saying goes, "Buy the
rumor, sell the news." The inauguration marks a pivotal moment, as it’s expected
many will sell their holdings, leading to a potential crash.
A Change of Heart?
Four years ago, Trump criticized Bitcoin and the broader crypto space. Now, he’s
fully immersed, launching memecoins and NFTs. The question arises: has he
genuinely embraced crypto, or is this just another way to capitalize on the market?
Concerns About $TRUMP
After investigating the project, several red flags have surfaced:
Developer Wallet Activity:
The wallet used to deploy $TRUMP (5e2qRc...5xjqLr5G7) made
suspicious transactions, including buying random PumpFun tokens
post-launch.
Token Distribution:
80% of the $TRUMP supply remains in a single wallet, raising concerns
about centralization and the risk of a major sell-off.
Dumping Wallets:
Many top wallets, linked to Trump’s team, cashed out millions.
These wallets didn’t purchase tokens but still profited heavily.
For example:H2ikJvq8...nfovXy3K cashed out $18M.
Similar activity was observed in other wallets, including 4GQeEya6...JZazVqS.
Timing and Market Conditions
With the crypto market entering a bull run, launching a project like $TRUMP now
seems strategic. Investors are eager, and liquidity is abundant, making it a prime
time for memecoins to thrive. However, the inauguration tomorrow is expected to
trigger massive sell-offs as traders look to secure profits.
The Inauguration Effect
Memecoins operate in a highly competitive and volatile market. As inauguration
day approaches, many traders are likely to sell their holdings, fearing a potential
crash. Those who act quickly stand to benefit, while others risk significant losses.
Conclusion
While $TRUMP has attracted significant attention due to its association with
Donald Trump, it’s crucial to remember that the former president is not directly
operating the project. Memecoins remain one of the riskiest sectors in crypto, and FOMO-driven decisions can lead to significant losses. Always prioritize due
diligence and never invest more than you can afford to lose.
Stay vigilant, and remember: not every hype train leads to profit.
