TRUMP Memecoin Gathers Momentum: Trading Spike and Manipulation Concerns

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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.

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