Trump Promotes Memecoin on X: Community Suspects Hacked Account

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Key Takeaways:

Speedy interest sparked by the unexpected promotion of a memecoin by Donald Trump on social media has been driving both enormous profits as well as abundant skepticism.
Despite the TRUMP token’s remarkable rise, concerns about manipulation and authenticity persist.
This extraordinary occurrence of The Donald has caused eyebrows to rise in relation to the celebrity effect and the nature of the crypto market at large.

The crypto market was shaken by a move by President-elect Donald Trump that nobody saw coming. His social media accounts showed a new meme coin called TRUMP that led to the price of the coin jumping up and people ended up debating if it was a hack or a genuine post. The fact that the news brings out the unstable nature of crypto markets and the high impact of the most influential figures is blinding. Was it a real promotion, or a well-thought-out trick?

Table of Contents

The Surprising Appearance of Memecoin TRUMP

On January 18th, just days before his inauguration, Donald Trump’s social media accounts rushed a new Solana-based memecoin called TRUMP into the market, which subsequently caused the market to experience an immediate uproar. The coin skyrocketed from $0.18 to reach $9 in three hours, with a $10 billion market cap. Dexscreener’s data indicated that there were over 49,800 buyers who participated in the mania while the 12,500 or so sellers were left behind. Liquidity also grew to $308.7 million.

Trump’s post on X

Skepticism and Hacking Concerns

While the TRUMP meme coin has seen a tremendous surge, it has received widespread scrutiny and doubts about its authenticity. The crypto community remains divided, with many questioning whether the project is genuinely endorsed by Trump or the result of account hacking or social engineering.

Possible Account Hack: There is speculation that Trump’s Truth Social and X accounts may have been hacked. With Polymarket data being updated already to predict a 10% of the likeliness of that scenario, the possibility still remains, especially since the honor ceremony is just around the corner.
Uncertain Verification: After establishing the fact that the messages are real, the discontent of Trump, or any of his representatives, has been overlooked as an issue, often leading to questions arising from this fact to be discussed by critics.
Profit-Making Undercurrent: Where the tone received from Trump’s posts is concerned some people are also suspicious of how promotional it is and whether it is authentic or not which is the way one might expect of a former president but quite the opposite.

On-chain Red Flags & Concerns

On-chain data has uncovered some serious security flaws:

Funding Origins: SpotOnChain revealed that the project was initially funded with SOL from Gate.io and Binance, exchanges less commonly used by U.S.-based projects. This raised questions about why more popular platforms like Coinbase were not used.

Deposits from Gate.io and Binance

Token Allocation: Coinbase director Conor Grogan points out that 80% of the token supply is locked in a multisig wallet, held by the creator who provided an initial liquidity of $40 million. The community is worried when the key to the network is in the hands of a few people for swaying the market in their favor.
Website Details: Although a press release on the “GetTrumpMemes” website says that it aims to raise the total circulating supply to 1 billion in three years through a gradual process, it also states that 80% of the same is awarded to Fight Fight Fight LLC and CIC Digital LLC, both of them with ties to the Trump Organization. This means that only a small portion of the supply is available to the public, indicating a tiered distribution model.
Concentrated Ownership: The top five holders control over 90% of the token supply, making the token highly vulnerable to price drops if any decide to sell.

Impact on the Market and the Resulting Uncertainty

The impact of the TRUMP meme coin launch on the market has also been at a considerable pace:

Rapid Price Surge: The coin price has gone through the roof since, having a market capitalization of more than $10 billion and it took less than three hours for it to hit its peak. An individual trader announced that they had made a profit of 20 million dollars within the first hour of the announcement.
Solana Price Increase: The price of Solana also went up, even though it is the possibility that the memecoin waiting to be built on this platform of the chain is the main reason for the price increase.

Solana price

Investor Caution: Even though rapid gains have been achieved, in contrast, investors are still edgy, because they have chosen not to invest in the currency since it is exposed to manipulation or the explanation of how the initial coin offering will be conducted is not clear. This event underscores the fact that memecoins are becoming victims to pump and dump schemes and other market manipulations more and more.
Unprecedented Event: Having a meme coin launched by a former president is the very first time, so many of those in the crypto and political spheres are in a complete mess not knowing what the implications might be for the future.

A Look Back at Trump’s Previous Crypto Endeavors

It’s important to mention that this is not even the first time Trump’s loved dabbling in the crypto world. He successfully launched World Liberty Financial (WLFI) during his 2024 Presidential campaign with his family’s support. WLFI was unlike TRUMP since it was not a memecoin, plus it was more straightforward with its objectives. The project nonetheless reflects Trump’s interest in the crypto business.

Analyzing the Trump Memecoin

In this part, the memecoin IS going to be examined through the specifics of the coin itself as well as the initial concerns and tokenomics.

Initial Red Flags

Through the first look, the endeavor had some immediate red flags, just like the memecoin scams hosted on many other sites:

Strong Match with Foreign Exchanges: The project got numerous millions worth of SOL tokens from Binance and Gate.io exchanges, which are not the options for the USA citizens, as was mentioned before. This is not the standard way for a project connected to the U.S. to be funded and subsequently, the question was asked whether its true origin was really about the US and its real purpose.
Website Similarity: The TRUMP memecoin’s official website looks really similar to the ones used for previous Trump NFT collections. It’s a project powered by CIC Digital, an official Trump partner, which adds some credibility but also brings up the question of the originality and the aim of it.

TRUMP Token Information

The description of the token actually explains all these points:

Total Supply: There can’t be more than 1 billion TRUMP tokens as the total supply is limited to this number.
Token Locking: The amount of the unlocked tokens is currently 80% of the total which will be at a constant release pace of about 3 years.
Circulating Supply: The original circulating supply was 200 million tokens.
Market Capitalization: The market cap reported that it was around $7.1 billion although the fact was that most of the tokens were locked which caused the actual value to be just $1.5 billion.

Trump Memecoin

Conclusion

The TRUMP memecoin saga appears far from over. You can see the whole truth today about the meme token if it is a deliberate project, a maneuver or a scam to fraud people, as it proves the volatility and uncertainty of the cryptocurrency market. Additionally, the occasion glorifies famous people and people with authority in the online economy.

Just as with Elon Musk’s opinions on Dogecoin in 2021, which ended up with severe price swings, Trump’s memecoin lead the market to change a lot with just one post of a tweet.

This situation highlights the importance of thorough research before investing in memecoins and risking your hard-earned money. It remains to be seen whether this event will have a lasting impact on the cryptocurrency world, but it will certainly be discussed for a long time.