The launch of the Official Trump (TRUMP) memecoin on January 18 has been marred by allegations of insider trading. On-chain analytics firm Bubblemaps identified a wallet that received $1 million four hours before the token’s release. This wallet purchased $5.9 million worth of TRUMP tokens within the first minute of launch, later selling $20 million while retaining $96 million in tokens.
The TRUMP token’s market capitalization soared to $42 billion, attracting significant attention from retail investors. Major exchanges, including Coinbase and Binance, listed the token, leading to substantial trading volumes. However, the concentration of token ownership has raised concerns; 80% of the supply is locked for CIC Digital, a company owned by the Donald Trump Revocable Trust.
Critics argue that the TRUMP memecoin’s launch undermines efforts to legitimize cryptocurrencies and could harm investor confidence. The Bitcoin community has expressed strong disapproval, labeling the token as a “get-rich-quick scheme” and emphasizing its divergence from Bitcoin’s principles.
As investigations into the insider trading allegations continue, the TRUMP memecoin’s future remains uncertain. The situation highlights the need for increased regulatory oversight in the cryptocurrency market to protect investors and maintain market integrity.
