Trump coin pump and dump scheme fleeces supporters even before inauguration

President of the United States, Donald Trump, has ignited controversy and concern among his supporters with the crash in the price of his meme coin following his inauguration on January 20, 2025.

The launch of the meme coin, $TRUMP, just days before his inauguration saw millions of dollars flow in; with the coin initially priced at $6.54, $TRUMP surged to a peak of $73.43, creating a temporary market cap of approximately $14 billion.

However, the coin's ownership structure reveals that a staggering 80% of its supply is held by Trump-affiliated entities, raising serious ethical questions about potential conflicts of interest and the motivations behind the launch.

As of 12:45 GMT+8 January 21, 2025, the coin's price stands at $32.73, reflecting a volatile market that has seen its value swing dramatically since its introduction.

Critics have labelled the $TRUMP coin launch as a classic "pump-and-dump" scheme, where insiders inflate the value of a financial asset while holding the majority of the supply, only to sell off their holdings for profit, leaving other investors to suffer the consequences as the value plummets.

This scenario has already played out, with the coin's value dropping significantly after the launch of a competing coin by Melania Trump, which further exacerbated the financial losses for many of Trump's supporters who had invested in the coin believing in its potential.

The launch has polarized opinions within the cryptocurrency community, with some viewing it as an innovative venture. In contrast, others see it as a predatory tactic to exploit Trump's loyal base. The situation has prompted calls for increased regulatory scrutiny in the crypto space, particularly given the ease with which new tokens can be created and the current lack of oversight.

As the market reacts to these developments, the potential for significant financial loss among supporters remains a pressing concern, highlighting the risks involved in investing in speculative assets like meme coins and Donald Trump's inherently predatory nature. 

(Callan Williamson)