TRUMP Memecoin Gathers Momentum: Trading Spike and Manipulation Concerns

user avatar

by Giorgi Kostiuk

2 years ago

The sudden increase in TRUMP memecoin's market capitalization to $42 billion has surprised investors and fueled interest, but also led to suspicions of market manipulation.

Trading Activity and Manipulation

On January 18, analytics firm Bubblemaps investigated a crypto wallet that received $1 million a few hours before TRUMP's launch. Blockchain data shows the wallet purchased $5.9 million worth of TRUMP tokens in the first minute of trading, then sold $20 million while retaining $96 million in tokens. These assets were moved to another wallet and distributed across ten wallets, all now actively selling on Solana decentralized exchanges (DEXs). The trading activity raises concerns about potential market manipulation.

Token Structure and Intentions

Preetam Rao, CEO of QuillAudits, highlighted issues with TRUMP's token structure and intentions. "Eighty percent of the supply is locked for CIC Digital, owned by the Donald Trump Revocable Trust," Rao explained. He added that the top 10 holders control 89.06% of the supply, with no clarity on the liquidity pool's burn status. "The token's launch in an Asian morning time zone suggests it's more about profit-making," he noted.

We see insider trading involved, but if the US government is supporting innovation, maybe it's a rug pull that also sets a foundation for innovation.Preetam Rao

Exchange Success and Impact on Solana Ecosystem

TRUMP's popularity surged post-listing on major exchanges Coinbase and Binance. According to CoinGecko, TRUMP trading volumes soared, with Bitget, MEXC, and KuCoin leading the activity. At the time of writing, TRUMP is up 194% in 24 hours, trading at $54.62. Meanwhile, Solana's ecosystem reached record highs, with platforms Raydium, GMGN, and Moonshot processing large volumes of transactions, attracting over 200,000 new users.

While the TRUMP memecoin shows rapid growth, analysts express doubts about its stability and trading transparency, noting potential market manipulation and impact on the Solana ecosystem.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Grayscale Appoints BitGo as Custodian for Hyperliquid Staking ETF

Grayscale has appointed BitGo Bank Trust as an additional custodian for its Hyperliquid Staking ETF to enhance custody services and operational flexibility.

user avatarAndrew Smith

Avalanche Sees Surge in Tokenized US Treasury Assets

The value of tokenized US Treasury assets on the Avalanche network has surged to approximately $545 million, marking a fourfold increase over the past year.

user avatarJacob Williams

Metaplanet Shows Liquidity Management with Strategic Bitcoin Transactions

Metaplanet sold 10,000 BTC for approximately $790 million and bought back 11,000 BTC for around $950 million, demonstrating its ability to manage liquidity effectively.

user avatarSon Min-ho

Navra Secures $19 Million in Series A Funding to Bridge Traditional Finance and Blockchain

Navra, a startup led by Mike Cagney, has successfully raised $19 million in Series A funding to enhance access to blockchain-based financial markets for traditional investors.

user avatarZainab Kamara

Arbitrum Proposes Strategic Initiative for USDG Stablecoin

Arbitrum has proposed a governance initiative to back USDG as a core strategic stablecoin within its ecosystem, including adding 100 million ARB to enhance liquidity and adoption.

user avatarTando Nkube

BitGo and HashKey Cloud Expand Partnership in Asia-Pacific

BitGo and HashKey Cloud have expanded their partnership to cover multiple areas of institutional crypto infrastructure, including staking, trading, custody, and asset tokenization in Singapore.

user avatarAyman Ben Youssef

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.