TRUMP Token About to Crash? Devs Quietly Remove $4.6M USDC From Liquidity Pool

Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors.

The Solana-based meme coin, TRUMP, is back in the news for another controversial chapter.

On-chain analytics platform LookOnChain reports that the TRUMP token team quietly removed $4.6 million worth of USDC from its liquidity pool just 13 hours ago.

$TRUMP dev pulled 4.6M $USDC from the pool by removing liquidity 13 hours ago.

Then they bridged 4.6M $USDC to #Ethereum and deposited it into #CoinbasePrime.https://t.go/ORSLE6vJiAhttps://t.go/Cgybm89XTi pic.twitter.com/NI3gZsJWFI

— Lookonchain (@lookonchain) April 16, 2024

These funds were then bridged from Solana to Ethereum and deposited into Coinbase Prime, a brokerage service often used by institutional investors.

While removing liquidity doesn’t automatically signal malicious intent, it has raised considerable concern, especially as it coincides with the upcoming unlock of 40 million TRUMP tokens valued at over $320 million.

These tokens, held by entities allegedly tied to the Trump Organization, are set to begin unlocking on April 17, with scheduled daily releases for the next two years.

An Overview of TRUMP Token Price Action

Adding to the anxiety is the TRUMP token’s recent price volatility. It is currently trading at $8.01, up by 0.2% in the past 24 hours and down by 30% in the past 30 days.

Though still up over 83% from its historical low of $4.29, it’s a steep fall from its all-time high of $73.43.

This latest development is not an isolated incident but part of a longer chain of events that have eroded trust in the TRUMP token.

Earlier in January, a viral Twitter thread began dissecting the TRUMP token project, accusing it of being one of history’s most elaborate crypto rug pulls.

The thread outlined multiple red flags: erratic developer activity, bizarre token distribution, and suspicious wallet behavior.

According to this analysis, the primary dev wallet used to deploy TRUMP was caught purchasing various PumpFun tokens shortly after launch for no discernible reason.

Even more troubling, 80% of the TRUMP token supply was found sitting in a single wallet with no identifiable owner. This means a centralized entity with total control can exit at any time.

Further investigation revealed that several top wallets, allegedly linked to the Trump team, sold millions worth of TRUMP tokens without ever purchasing them.

These wallets appeared to be part of the core team. One wallet reportedly cashed out $18 million alone.

Trump Family Web3 Ambitions Add Fuel to the Fire

A report by Fortune on April 15 coincides with this liquidity drama, which reveals that the Trump family is venturing deeper into the Web3 space.

According to sources, they are preparing to launch a blockchain-based, real estate-themed game inspired by Monopoly GO!.

The game is expected to launch later this month and is led by longtime Trump associate Bill Zanker.

The mechanics will blend crypto elements with Monopoly-style gameplay, enabling players to earn in-game tokens through blockchain-based real estate development.

The new game is just part of the Trump family’s wider Web3 ambitions. Under the umbrella of a venture called World Liberty Financial, launched ahead of the 2024 U.S. election, the family has been acquiring digital assets like Ethereum and Tron while promoting various DeFi services.

Though these services remain largely unimplemented, public records indicate that 75% of the project’s net revenue goes to a company linked to Trump.

The Trump family is deeply embedded in the project, with Donald Jr., Eric, and Barron listed as official “Web3 Advisors.”

Given the interconnected nature of the meme coin, the upcoming real estate game, and Trump-linked financial ventures, the recent $4.6 million liquidity removal appears even more concerning.

Critics argue that the Trump brand is being used to front potentially exploitative projects, where insiders stand to gain massively at the expense of retail investors.