Insider Trading Allegations Emerge Around TRUMP Meme Coin
Launch
Amid the ongoing fallout from the controversial Libra (LIBRA) meme coin, Hayden Davis, its creator, has come forward with a serious allegation involving the TRUMP meme coin. Davis claims that a similar insider trading scheme was orchestrated around the launch of the TRUMP coin, which was tied to former President Donald Trump. According to Davis, certain insiders were granted exclusive early access to the coin, purchasing it for a massive $500 million at a private event in Washington, D.C., before it was made public.
In an interview with investigative YouTuber Stephen Findeisen, aka Coffeezilla, on February 16, Davis shared details of what he described as a highly organized effort to allocate significant amounts of TRUMP tokens to select individuals ahead of the public launch. He clarified that the issue was not a case of bots or retail investors sniping the token, but rather an orchestrated insider allocation, ensuring a select group of people benefited substantially from the launch.
The TRUMP meme coin, launched on January 18, 2025, saw a rapid rise in its value before experiencing a dramatic drop. During the launch period, Coffeezilla was vocal in questioning the timing and distribution of the coin, especially given that it was unveiled just hours before Trump's inauguration. Early investors, potentially with insider knowledge, saw significant profits, while most other investors faced substantial losses. This has sparked comparisons to similar situations involving meme coins tied to political figures, such as Melania Trump’s coin, MELANIA, and the LIBRA token supported by Argentina’s President Javier Milei.
Meanwhile, new blockchain data suggests that the same team behind TRUMP may have also been involved in MELANIA’s creation.