Breaking: TRUMP Memecoin Attracting Attention, Is It a Scam?

The launch of Donald Trump's memecoin TRUMP has attracted significant attention in the cryptocurrency industry. Announced on January 18, this currency quickly gained momentum, with its market capitalization skyrocketing from $200 million to $27 billion in just a few hours. Despite the explosive growth, influencers and cryptocurrency analysts are warning about the legality, tokenomics, and the impact of Trump's involvement. Introducing TRUMP Memecoin This project was first posted on President-elect Donald Trump's Truth Social account on January 18, and the market reacted almost immediately. The market capitalization of the token surged to $400 million within 15 minutes after the announcement. The price of Solana reached an all-time high (ATH) of $267 for Solana (SOL), also benefiting from the strong launch of TRUMP. The rapid surge of this currency has raised many questions among industry leaders and enthusiasts. "The initial price increase of this token is unlike any price increase we have seen before," cryptocurrency analyst Will Clemente said. SOL reached a new ATH after the announcement. According to Clemente, it is a significant milestone in a short period of time. Influential figure in the cryptocurrency field Max Schwartman questioned whether the posts came from Trump's legal team or the account was compromised. Speculation about a hack has been fueled by the similarity between the TRUMP coin website and Trump's previous NFT project. A post from @0xCygaar observed that the cloudflare setup, SSL certificate, and HTML structure of the website are similar to the previous NFT launch. Tokenomics And Suspicious Holders One of the most prominent concerns is the tokenomics behind the memecoin TRUMP. According to the project's announcement, the total supply of $TRUMP is limited to 1 billion tokens. However, only 200 million tokens are in circulation at launch, with the remaining tokens locked up for three months. 80% of the tokens are currently locked, with gradual unlocking starting after three months and full vesting period lasting three years. According to the latest data, 20 people holding the most own a total of 870,202,451.79 tokens, accounting for 87.02% of the total supply, while other accounts only control 12.97%. The concentration of token ownership raises concerns about the possibility of market manipulation and internal control. Furthermore, the developer's wallet, holding 80% of the tokens, is currently valued at about $15.5 billion. This has led to speculation that the project may be designed to benefit a selected group of individuals, rather than the general public. FOMO Fever: Double-edged Sword? The market's FOMO (fear of missing out) reaction to the launch was swift, with many traders jumping in. However, some cryptocurrency analysts warn that the rapid increase could lead to a major market correction. “I have never seen anything like this in the history of Solana,” analyst Will Clemente said. “The price of Solana surged 4% while everything on the chain began to collapse as people panicked to sell off and FOMO into $TRUMP.” Crypto commentator JRNY Crypto expressed concerns about the lack of confirmation from Trump's advisors on the legality of the project. He questioned why the Trump team did not provide any specific details beyond social media posts. Despite the hype, some influential people, including Daniel Got Hits, have chosen to steer clear of this token. "I won't touch this with a ten-foot pole," he told his followers on X. Issues of Trust and Market Manipulation The combination of extreme volatility, questionable tokenomics, and doubts about the project's legality has made a significant portion of the cryptocurrency community cautious. Some industry leaders are concerned that this launch could damage the reputation of the cryptocurrency market in general, 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 cryptocurrency-friendly policies, including an executive order prioritizing digital assets. However, currently, the memecoin TRUMP seems to be a hot spot, causing division in the industry.