Some crypto traders have raised concerns about potentially suspicious trading activity surrounding the Solana-based TRUMP memecoin. The cryptocurrency’s market cap rose to $42 billion which drew the attention of retail investors. Analytics firm Bubblemaps reports that a wallet received $1 million four hours before the TRUMP token’s launch and soon after purchased $5.9 million worth of TRUMP tokens. The same wallet eventually sold $20 million worth of the tokens but still retains $96 million. These tokens were then distributed to 10 different wallets which are now actively trading them on Solana decentralized exchanges. This activity has led some to question if there’s been manipulation of the TRUMP memecoin market.
CEO of QuillAudits, a Web3 security company, Preetam Rao, has highlighted concerns around the purpose and allocation structure of the TRUMP token. “Eighty percent of the supply is locked for CIC Digital, a company owned by the Donald Trump Revocable Trust. This is the same entity that launched Trump NFT Trading Cards three years ago. The website says it’s ‘not an investment but a show of support,'”, Rao explained. He also pointed out that the top 10 holders own 89.06% of the supply and added that the token was launched in an Asian morning time zone, taking cynically, this as just another method for Trump to generate revenue.
Despite allegations, TRUMP memecoin has become quite popular. Its popularity soared when significant crypto exchanges like Coinbase and Binance announced their listing of TRUMP. Over the past day, the trading volume of the TRUMP memecoin rose sharply with Bitget, MEXC, and KuCoin featuring the highest activities. At time of writing, TRUMP’s value has risen 194% in the last 24 hours, trading at $54.62. This popularity resulted in a significant increase in activity within Solana’s ecosystem.
However, not everyone has been thrilled with the launch of the TRUMP memecoin. The memecoin has drawn criticism from multiple members of the Bitcoin community, who claim it as an opportunistic venture and fundamentally at odds with Bitcoin’s principles. Brandon Quittem, vice president of revenue at Swan Bitcoin, called it a “get-rich-quick scheme.” Meanwhile, Will Cole, a Bitcoin advocate and head of product at Zaprite, labeled the memecoin as “pump-and-dump-as-a-service.”
Despite speculation about a potential “USA Coin” being the next project, Eric Trump has quashed such rumors by confirming there is no such project in development.