Trump’s Official Memecoin Faces Suspicion as Market Cap Surges to $42 Billion
Unusual trading activity around Donald Trump’s Solana-based TRUMP memecoin has sparked market manipulation concerns, as its market cap skyrockets to $42 billion.
Suspicious Wallet Activity Raises Red Flags
The crypto world is buzzing with controversy following the launch of Donald Trump’s Official TRUMP memecoin, which has taken the market by storm. On January 18, onchain analytics firm Bubblemaps reported suspicious wallet activity surrounding TRUMP’s meteoric rise.
A single wallet, which received $1 million hours before the token’s launch, made a $5.9 million purchase of TRUMP tokens within the first minute of trading. This wallet later sold $20 million worth of tokens while retaining a staggering $96 million in TRUMP holdings.
To complicate matters, the tokens were transferred to another wallet and distributed across 10 separate wallets, all actively selling on Solana’s decentralized exchanges (DEXs). Such coordinated activity has raised concerns over potential market manipulation.
Expert Warnings on TRUMP’s Token Structure
Preetam Rao, CEO of Web3 security firm QuillAudits, highlighted several red flags with TRUMP’s tokenomics and overall structure.
- Supply Control: Rao revealed that 80% of the token supply is locked under CIC Digital, a company tied to the Donald Trump Revocable Trust. This entity also launched Trump NFT Trading Cards three years ago.
- Liquidity Concerns: The top 10 holders control 89.06% of the total supply, raising questions about liquidity and the potential for price manipulation.
- Timing Questions: The token was launched during Asian morning trading hours, suggesting a profit-driven strategy rather than broad accessibility.
Rao speculated, “We’re seeing signs of insider trading. Whether this is a case of manipulation or a stepping stone for innovation remains unclear.”
TRUMP’s Memecoin Mania Reaches Mainstream
Despite the controversies, TRUMP has gained mainstream momentum, with leading exchanges Coinbase and Binance listing the token.
- TRADING SPIKES: According to CoinGecko, TRUMP trading volumes have exploded, with platforms like Bitget, MEXC, and KuCoin leading the way.
- PRICE SURGE: At the time of writing, TRUMP is trading at $54.62, up 194% in just 24 hours.
Solana Ecosystem Benefits from TRUMP Frenzy
The TRUMP memecoin’s success has sent ripple effects through the Solana ecosystem:
- Record Activity: Decentralized platforms like Raydium, GMGN, and Moonshot reported millions in fees and transactions.
- New Users: Over 200,000 new onchain users joined Solana during the TRUMP hype, boosting its visibility and adoption.
Conclusion
While TRUMP’s memecoin has captured the attention of the crypto world, its rapid rise is accompanied by questions about market manipulation and insider trading. Experts warn of risks due to its concentrated token ownership and lack of transparency, even as mainstream exchanges embrace the asset.
For investors, the TRUMP memecoin serves as both an opportunity and a cautionary tale—balancing the allure of massive returns against the potential pitfalls of a market driven by speculation.
Disclaimer: This article does not constitute financial advice. Investors should conduct thorough research before making any financial decisions.
