ERICTRUMP token has increased in value by approximately 6,200% since its launch

The astonishing rise of the token has raised serious concerns in the blockchain industry about the likelihood of it undergoing a typical "rug pull."

A token allegedly related to Eric Trump has increased in value by approximately 6,200% since its launch last week on Pump.Fun, a site where many memecoins are introduced to the market. On its first day of launch in the market, the token exploded to become a $140 million project, according to information provided by CoinMarketCap.

However, the astonishing rise of the token has raised serious concerns in the blockchain industry about the possibility of it undergoing a typical "rug pull." This term describes a scam in which the token creators quickly remove liquidity or sell their stakes, causing the token's price to plummet before buyers receive worthless coins.

Specifically, researchers at on-chain analytics firm Bubblemaps have highlighted the unusual concentration of ownership holdings related to the meme coin. Analyzing the token transactions reveals that 10 distinct addresses hold the majority of the top 250 wallets.

"This is a rug pull in the making," the researchers posted on X on May 16.

The ownership structure of the ERICTRUMP token is similar to that of tokens like WOLF before they collapsed. The creators of WOLF are also responsible for creating the Official Melania Memecoin and the failed LIBRA project. WOLF lost nearly all its value after soaring to a market cap of $42 million, primarily due to a single user holding over 82%.

It was also found that the creator of the ERICTRUMP token attempted to launch several other Eric Trump tokens on Pump.Fun, but none of the tokens achieved significant success. A researcher from Bubblemaps disclosed, "the deployer behind the fake Eric Trump token also created three other failed Eric Trump tokens on Pump.Fun," according to a report by Cointelegraph.

These events are occuring as several projects are coming under increasing attention and suspicion for leading to massive losses. Argentinians are still thinking about the LIBRA project as their president began a troubling experiment.

Eight internal wallets have withdrawn $4 billion in market value from the project in a short time. Additionally, a report from Solidus Labs labeled 98% of Pump.Fun tokens as a "scam." This contributes to the concerns regarding rug pulls surrounding the Eric Trump memecoin.