TRUMP Memecoin Faces Scrutiny as Suspicious Trading Activity Raises Market Manipulation Concerns

Donald Trump's newly launched Solana-based TRUMP memecoin is facing scrutiny after suspicious trading activity has raised alarms across the cryptocurrency community.

Freshly minted Solana (SOL)-based TRUMP memecoin is now under the scanner after suspicious trading activity raised eyebrows across the crypto community. Despite the coin’s skyrocketing rise, with its market cap surging to $42 billion, the sudden influx of retail traders has sparked concerns about potential market manipulation.

Bubblemaps Detects Suspicious Trading PatternsOn January 18, on-chain analytics firm Bubblemaps highlighted striking findings. A crypto wallet, funded with $1 million just hours before the official TRUMP token launch, swiftly purchased $5.9 million in TRUMP tokens within the first minute of launch. Later, the wallet sold $20 million worth of tokens while retaining a massive $96 million in tokens. These tokens were then funneled through multiple wallets, with trades now actively occurring on Solana decentralized exchanges (DEXs), sparking suspicions of manipulation within the market.

Preetam Rao, the CEO of QuillAudits, a Web3 security company, expressed deep concerns about the TRUMP token’s distribution and purpose. He highlighted that 80% of the total supply is locked for CIC Digital LLC, an entity linked to the Donald Trump Revocable Trust, which earlier launched Trump NFT Trading Cards. Rao finds the launch timing, occurring in an Asian morning time zone, to be peculiar, suggesting that the project may be less about innovation and more about profits for its backers.

TRUMP Memecoin Surges with Exchange ListingsBut the TRUMP memecoin gained incredible momentum following major announcements from leading crypto exchanges like Coinbase and Binance. According to CoinGecko, the memecoin saw a massive surge in trading activity, with platforms like Bitget, MEXC, and KuCoin leading the charge with millions in trading volume. In just 24 hours, TRUMP saw a remarkable 194% increase, reaching a price of $54.62.

This growing popularity drove an explosion in activity within Solana’s ecosystem. Raydium, Solana’s largest DEX, set new records with $25.07 million in fees and $2.85 million in revenue. Other platforms like GMGN and Moonshot also reported exceptional trading volumes and fees, indicating unprecedented interest in the Solana network.

Bitcoin Community Slams Trump CoinWhile the memecoin enjoys mainstream traction, especially on Solana’s blockchain, the Bitcoin community harshly criticized the TRUMP token. Bitcoin proponents voiced concerns about the project’s opportunistic nature, accusing it of being a “pump-and-dump” scheme designed to capitalize on retail speculation.

Brandon Quittem, Vice President of Revenue at Swan Bitcoin, tweeted, “Trump coin is such an extreme case of shitcoinery it will ultimately help differentiate Bitcoin further.” Meanwhile, Pierre Rochard, Vice President of Research at Riot Platforms, highlighted that Bitcoin’s design and principles are fundamentally different from those of the TRUMP token.

Is a “USA Coin” the Next Meme Coin in the Making?

In the whirlwind of TRUMP memecoin activity, rumors surfaced about a “USA coin” being developed as the next big project. However, Eric Trump quickly shut down these speculations, clarifying that there was no such project in the works.

Despite the controversies surrounding the TRUMP token, its remarkable rise and the ongoing trading activity on major platforms mark a critical moment for the Solana blockchain and meme coins in general. As the memecoin space continues to evolve, the TRUMP token’s journey remains one to watch closely.