Source: TRM; Compiled by 0xjs@Jinse Finance
On January 18, then-President-elect Donald Trump launched the $TRUMP token, a Meme coin on the Solana blockchain, marking an important step in his foray into the cryptocurrency space. The $TRUMP token was announced through X and Truth Social, and was touted as a digital asset that embodies community values and "winning". Based on the Solana blockchain, the $TRUMP token leverages the blockchain's high-speed, low-cost transaction infrastructure, making transactions and integrations within the ecosystem highly efficient.
Shortly after the launch of $TRUMP, the incoming First Lady announced on Sunday that she had also launched her own Meme coin on Solana. "The official Melania Meme Coin is live!" she posted on the X platform. Following the release of the MELANIA token, its total market value quickly soared to around $1.6 billion.
The details of the $TRUMP token include a total supply of 1 billion tokens. At launch, 200 million tokens (20%) were available for public purchase through the official $TRUMP website, supporting debit card and cryptocurrency payments. The remaining 800 million tokens (80%) were allocated to CIC Digital LLC, an affiliate of the Trump Organization. These reserved tokens are locked for 3 to 12 months, and then unlocked on a gradual daily schedule over the following 24 months. This organized release mechanism aims to mitigate the risks of large-scale dumping and ensure market stability.
Meme Coins
Meme coins are a unique class of digital currencies that thrive on internet culture, memes, and social trends. Unlike cryptocurrencies like Bitcoin or Ethereum, which are built on technological innovation or specific utility functions, the value of Meme coins primarily stems from community engagement and the appeal of viral propagation. These tokens have gained popularity on platforms like X, Reddit, and Telegram, and are inherently speculative, with their market performance driven by hype rather than intrinsic functionality.
Prominent examples of Meme coins include Dogecoin (DOGE), which started as a joke but later became one of the most widely recognized cryptocurrencies; and Shiba Inu (SHIB), often referred to as the "Dogecoin killer", which reached a multi-billion-dollar market capitalization at its peak. Others, such as Pepe (PEPE), based on the internet meme "Pepe the Frog", and Floki (FLOKI), inspired by Elon Musk's dog, have also garnered attention due to their community-driven growth. These tokens demonstrate the speculative nature and volatility of Meme coins.
Market Performance and Reaction
Shortly after the launch of $TRUMP, its value quickly soared. The price first rose to around $10 per token, and then skyrocketed to a peak of $74.59 within a few hours, before stabilizing around $52. This rapid growth pushed the token's market capitalization close to $11 billion, placing it among the top-valued cryptocurrencies.
The launch of TRUMP attracted significant attention from retail investors and cryptocurrency enthusiasts, thanks to Trump's global recognition and the cultural appeal of Meme coins. However, this popularity has also raised questions about potential conflicts of interest and the regulatory framework for such tokens.
Concerns about a Rug Pull
Since its launch, the media has raised some questions about whether this could be a "rug pull" or "pump and dump" scam. A "rug pull" is a cryptocurrency scam where developers suddenly withdraw liquidity from a project, causing the token value to plummet and leaving investors with worthless assets. "Pump and dump", on the other hand, refers to artificially inflating an asset's value and then selling it at the peak.
As of January 21, 2025, although the token value has declined to around $38 per token, a 50% drop from the weekend high, $TRUMP does not exhibit the characteristics of an imminent "pump and dump" scam. According to the Commodity Futures Trading Commission, "pump and dump" schemes typically involve false news reports and anonymous organizers, and the entire process can be completed in a matter of minutes.
For example, in October 2021, scammers launched a token called $SQUID, named after the popular Korean Netflix series "Squid Game". Its sleek website and well-crafted social media accounts were filled with images from the show, creating an illusion of official endorsement. Within weeks of its launch, the $SQUID price skyrocketed over 40,000%. However, when holders tried to cash out their gains, they were locked out by the smart contracts supporting the token. It turned out that the contracts only allowed the creators to sell. After the creators cashed out, the $SQUID price plummeted from $2,862 to less than a penny, leaving investors with nothing. Instantly, the anonymous scammers disappeared with hundreds of millions of dollars, some of which were transferred through mixers and other on-chain money laundering methods.
Additionally, reputable and licensed exchanges are listing $TRUMP for trading (which is not common for overnight Meme coin fortunes), and the reserved tokens are locked for up to 12 months, with a gradual unlocking over two years, reducing the risk of sudden dumping, a hallmark of "rug pulls" or "pump and dump" schemes.
Price performance since launch, data from Coinmarketcap.com
While previous Trump-themed tokens, such as the Solana-based Trump Coin (DJT) launched in June 2024, have been associated with fraudulent activities, $TRUMP has exhibited relative stability and transparency since its launch. Despite initial skepticism, there have been no sudden liquidity withdrawals or developer misconduct, further supporting the conclusion that $TRUMP does not exhibit "rug pull" characteristics, although the rapidly evolving Meme coin landscape can change quickly. However, the significant internal allocation has raised discussions about the volatility of the Meme coin market and foreign influence, highlighting the need for regulatory oversight in the constantly evolving Meme coin space.
Activities of the $TRUMP Creators
The $TRUMP token was created on the Solana blockchain, with the address 6p6xgHyF7AeE6TZkSmFsko444wqoP15icUSqi2jfGiPN.
Using the TRM forensics tool, we can see the detailed transaction information and other assets associated with this address.
The $TRUMP address appears to hold other Meme tokens, such as
"Trump Second Chance" (ETJ3eax4qn5EezzsarNuxEJamD67KXa7z8W4uKEWpump),
"Official Trump Coin" (BAKr8e4iV1Y2c2XJxVFhbMyYnfcRU4dvkaKzQUsepump)
and "Mark Cuban Meme" (AVH97ZaMnUmZYGdSJTEJ6KRSicxGGf7ijQ994rm5pump).
These additional Meme coin addresses end with "pump", which likely indicates they were created for trading on the pump.fun platform.
It is currently unclear whether the creators plan to launch these additional Meme coins in the future, or if the $TRUMP creators also own the other two Trump-related tokens (seemingly ready for launch) and the Mark Cuban Meme coin, and what significance this may hold.
The Cultural and Community Impact of $TRUMP
As a Meme coin, $TRUMP has integrated with cultural and political narratives, becoming both a speculative asset and a catalyst for community engagement. Its launch has sparked discussions about the interplay between politics, digital assets, and investor behavior. Despite criticism, the success of $TRUMP demonstrates the growing influence of cultural figures in the cryptocurrency space, presenting both opportunities and challenges.
While there is currently no evidence to suggest that $TRUMP is a "rug pull" scam, the significant internal allocation and its prominent cultural position warrant close regulatory scrutiny.
