It appears there is unusual stock market behavior surrounding the Solana-based TRUMP memecoin linked to Donald Trump, as its total value skyrocketed to an astounding $42 billion, triggering a whirlwind of enthusiasm among individual investors.
As an analyst, I delved into an intriguing investigation on January 18th, focusing on a cryptocurrency wallet that received a substantial $1 million influx, approximately four hours prior to the launch of the TRUMP token.
The initial data from the blockchain shows that one wallet bought approximately 5.9 million dollars’ worth of TRUMP tokens at its debut, later offloading 20 million while holding onto a remaining 96 million. Subsequently, these TRUMP tokens were transferred through another wallet and distributed among 10 different wallets, which are currently trading the tokens on Solana’s decentralized exchanges (DEXs).
The recurring trading pattern surrounding TRUMP memecoin is causing apprehension due to suspicions of possible market manipulation, as this digital coin consistently captures attention in news outlets.
As a fellow crypto investor, I’ve been keeping an eye on the TRUMP token and recently, I’ve noticed some concerns raised by Preetam Rao, the CEO of QuillAudits – a Web3 security company. He’s expressed some reservations about the allocation structure and purpose of the TRUMP token, which has piqued my interest and led me to delve deeper into its details.
Approximately 80% of the supply is secured for CIC Digital, a company under the control of the Donald Trump Revocable Trust – the same organization that debuted Trump NFT Trading Cards three years ago. According to their website, it’s important to note that this isn’t an investment opportunity, but rather a means of expressing support, as stated by Rao.
Rao pointed out that the 10 largest holders control approximately 89.06% of the available supply, and it’s unclear if the liquidity pool has been burned yet. He further commented that the token was introduced during Asian morning hours, suggesting a potential opportunity for Trump to generate profits.
He told CryptoMoon:
“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”
TRUMP memecoin goes mainstream
Interest in the token dramatically increased when it was confirmed that prominent cryptocurrency platforms, such as Coinbase and Binance, would start supporting TRUMP.
Based on data from CoinGecko, there was high transaction volume for TRUMP over the past day. Bitget emerged as the top platform with approximately $864.9 million, closely followed by MEXC with around $842.7 million, and KuCoin with about $445.2 million. At the time this text was written, TRUMP had increased by 194% over the last 24 hours, trading at a price of $54.62.
Over the past period, there was a significant surge in activity within the Solana ecosystem. Notably, its largest Decentralized Exchange (DEX), Raydium, raked in an impressive $25.07 million in fees and generated $2.85 million in revenue. This represents a new record high for the platform, as reported by DefiLlama.
The Meme trading tool GMGN handled approximately $153 million worth of transactions on the Solana network, generating around $1.52 million in fees. Meanwhile, the Moonshot cryptocurrency trading platform accumulated fees totaling about $1.597 million.
Over the past 12 hours, Moonshot successfully handled approximately $400 million in transactions, setting new records for fiat onboarding and attracting around 200,000 new users to the blockchain.
Despite all the buzz, there were those at X who pondered over the possibility of a “USA coin” being the upcoming venture. However, Eric Trump debunked these speculations, stating unequivocally that no such project is in progress.
Bitcoiners criticize Trump’s memecoin launch
The Bitcoin crowd has shown firm opposition towards the memecoin based on Solana, which was launched by Trump, labeling it as exploitative and contradictory to the core values of Bitcoin.
Brandon Quittem, the Vice President of Revenue at Swan Bitcoin, shared on X: “The Trump Coin is such an extreme example of ‘cryptocurrency hype’ that it will eventually help clarify Bitcoin even more. The Trumpcoin isn’t anything like Bitcoin; it’s essentially a quick way to make money.
As an analyst, I’d like to highlight that Pierre Rochard, Vice President of Research at Riot Platforms, underscores the unique and distinct nature of Bitcoin’s design.
Cole, an ardent supporter of Bitcoin and the head of product at Zaprite, referred to the memecoin as a “pump-and-dump service for profit,” with the potential for financial gains being shifted predominantly from Gen Z and Millennial generations towards Baby Boomers. This trend is facilitated by platforms like Ethereum and Solana.
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2025-01-19 12:19