The launch of Donald Trump’s TRUMP memecoin has generated significant attention across the crypto industry. Announced on January 18, the coin quickly gained momentum, with its market cap soaring from $200 million to $27 billion within a few hours.
Despite its explosive growth, crypto influencers and analysts are raising red flags about its legitimacy, tokenomics, and the implications of Trump’s involvement.
Official TRUMP Memecoin Launch
The project was first posted on President-elect Donald Trump’s Truth Social account on January 18, and the market reacted almost immediately.
The token’s market cap skyrocketed to $400 million within 15 minutes of the announcement. Solana price climbed to an all-time high (ATH) of $267 for Solana (SOL), which also benefited from the TRUMP launch hype. The coin’s rapid surge has sparked many questions among industry leaders and enthusiasts.
“The token’s initial pump was unlike anything we’ve seen before,” says crypto analyst Will Clemente. SOL hit a new ATH after the announcement. That’s a major milestone in a short time frame, as per Clemente.
Crypto influencer Max Schwartman questioned whether the posts came from Trump’s legitimate team or if the account had been compromised.
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Speculation about a hack has been fueled by similarities between the TRUMP coin’s website and Trump’s previous NFT project. A post from @0xCygaar observed that the website’s cloudflare setup, SSL certificates, and HTML structure mirrored that of the former NFT launch
Questionable Tokenomics and Holders
One of the most glaring concerns is the tokenomics behind the TRUMP memecoin. According to the project’s release, the total supply of $TRUMP is capped at 1 billion tokens.
However, only 200 million tokens are in circulation at launch, with the remaining tokens locked for three months. 80% of the tokens are currently locked, with gradual unlocks beginning after three months and a full vesting period lasting three years.
As of the latest data, the top 20 holders collectively own 870,202,451.79 tokens, making up 87.02% of the total supply, while the other accounts control only 12.97%. The concentration of token ownership raises red flags about potential market manipulation and insider control.
Furthermore, the developer wallet, which holds 80% of the tokens, is currently valued at around $15.5 billion. This has led to speculation that the project may be designed to benefit a select group of insiders, rather than the broader public.
The FOMO Frenzy: A Double-Edged Sword?
The market’s FOMO (fear of missing out) reaction to the launch was swift, with many traders scrambling to jump on board. However, some crypto analysts warn that the rapid rise could lead to a massive market correction.
“I’ve never seen anything like this in Solana’s history,” said analyst Will Clemente. “Solana’s price spiked by 4% while everything on-chain started nuking as people panic-sold to FOMO into $TRUMP.”
Crypto commentator JRNY Crypto expressed concern about the lack of confirmation from Trump’s advisors regarding the legitimacy of the project. He questioned why the Trump team hadn’t provided any concrete details beyond social media posts.
Despite the hype, some influencers, including Daniel Got Hits, have opted to stay away from the token. “I’m not touching this thing with a ten-foot pole,” he told his followers on X.
Trust Issues and Market Manipulation
The combination of extreme volatility, questionable tokenomics, and doubts about the legitimacy of the project has caused a significant portion of the crypto community to tread carefully.
Some industry leaders are concerned that this launch could damage the credibility of the broader cryptocurrency market, especially as the United States prepares for a new presidential administration.
Trump’s inauguration on January 20 has led to speculation that he may introduce crypto-friendly policies, including an executive order prioritizing digital assets. However, for now, the TRUMP memecoin appears to be a flashpoint, dividing opinion within the industry.
Source: https://www.thecoinrepublic.com/2025/01/18/breaking-viral-trump-memecoin-raises-eyebrows/