TRUMP memecoin on Solana has shot up in value, now with a market cap of $42 billion, and is attracting the attention of retail investors (and possibly even charges of insider trading).
A suspicious wallet that had put $1 million worth of funds into the smart contract mere hours before the token’s launch was discovered to have strange trading patterns by onchain analytics firm Bubblemaps. After a minute of trading, it had bought $5.9 million worth of TRUMP tokens, selling $20 million in its next minute, and keeping $96 million in tokens. Additional analysis showed that tokens ended up in 10 additional wallets that are now actively trading on Solana’s decentralized exchanges (DEXs).
It has also raised questions about possible market manipulation. Preetam Rao, CEO of Web3 security company QuillAudits, said 80% of the supply was locked for CIC Digital, a Donald Trump trust. Trump’s NFT trading cards are the same entity behind this. However, according to website, the token is ‘not an investment but a showing of support’, but that doesn’t match the allocation and trading patterns of the token.’
TRUMP Memecoin Sparks Adoption of 200K New Users
The top 10 token holders own 89.06% of the supply, and there is no clarity on whether they’ve burnt the liquidity pool at this momentum.
“We can see some insider traders involved, but I feel if the US government is supporting projects to set a roadmap for innovation in the country. Maybe it’s a rug pull, but it lays the foundation for innovation”
The token has made it to exchanges like mainstays Binance and Bittrex despite the controversy. TRUMP’s meteoric rise is fueled by Coinbase and Binance listing it. Trading volumes, according to CoinGecko, also peaked to all-time highs in the last 24 hours, as Bitget scooped $864.9 million, MEXC with $842.7 million, and KuCoin with $445.2 million. The token then cost just $3.22 in one day’s time, but it is now trading at $54.62—up 194%.
Solana’s ecosystem has also been revitalized by the hype. Solana’s largest DEX, Raydium, has recorded $25.07 million in fees and $2.85 million in revenue, new highs. GMGN, a meme trading tool, processed $153 million in transactions, garnering itself $1.52 million in fees, while Moonshot reported $1.597 million in fees off $400 million volume traded in 12 hours.
Solana’s activity was further boosted by the token’s fast adoption, turning on over 200,000 new users onchain.
But with this frenzy of activity, rumors of a ‘USA coin’ arose, which Eric Trump moved to sweep away, stating that there is no such project on the go.
TRUMP memecoin has been criticized by the Bitcoin community as a blatant cash grab that goes against Bitcoin’s core principles. ‘An extreme case of shitcoinery,’ Brandon Quittem, vice president of revenue at Swan Bitcoin, said, adding that it is fundamentally different to Bitcoin.
Head of product at Zaprite, Will Cole, described the token as an ‘as a service’ pump-and-dump to transfer wealth from younger to older generations. Pierre Rochard, vice president of research at Riot Platforms, highlighted Bitcoin’s special and proper design.
The TRUMP memecoin has become a story thread in the media as controversy, hype, and the potential market impact of the cryptocurrency continue to unfold.
