TRUMP Token Was Distributed to Insiders Before Its Public Launch, Research Finds

This article argues that insiders received the TRUMP token at the pre-inaugural Washington crypto ball before it became available for public trading.

Insiders Scooped TRUMP Token Before Retail FOMO

Insiders had the opportunity to buy the TRUMP token at the pre-inaugural Washington crypto ball before it became available for public trading, according to 10x Research.

The research firm noted that these early investors were able to capitalize on the opportunity as major exchanges rushed to list the coin.

As the coin’s value surged past $60, briefly touching $70, it is estimated that retail traders invested billions of dollars in the token.

However, the price quickly collapsed to $10, leaving those retail traders with significant losses. This pattern closely follows previous speculative cycles, such as the 2021 NFT boom and bust.

Early participants, who sold their coins quickly, managed to benefit while later investors faced significant losses.

The TRUMP coin's value dropped by 50% within a week, and on-chain data showed that early buyers rapidly liquidated their holdings, using retail traders as exit liquidity.

This sell-off had a major impact on the Solana meme coin sector, which had been driving a large volume of market activity.

Solana Ecosystem Tokens Face Heavy Selling Pressure

The broader market downturn has also affected key tokens within the Solana ecosystem.

Raydium's RAY token, a major automated market maker, has seen a 70% price decline in just 30 days.

Meanwhile, Jupiter's JUP token, which operates as a decentralized exchange on Solana, has dropped by 42%. Similarly, Solana's SOL token has lost 41% over the same period.

These rapid price declines suggest a decreasing interest in speculative tokens linked to recent market trends.

Pump.fun, a leading meme coin launch platform on Solana, has also seen a dramatic shift.

Over the past year, it has facilitated 8.4 million meme coin launches, with activity peaking around President Donald Trump's inauguration.

During the Christmas to inauguration period, 1.7 million meme coins were launched. However, daily launches have now decreased from 62,000 to 24,000.

Despite lower meme coin creation costs due to Solana's price drop, participation has declined significantly.

Pump.fun Slumps Back to Hundreds

Furthermore, Pump.fun's revenue stream has been impacted, with daily earnings plummeging to their lowest in seven months by March 8.

Previously, Pump.fun maintained daily fees above $1 million. But current data shows 24-hour fees and revenue at $108,124.

President Donald Trump's involvement in the crypto sector has continued to be a subject of discussion.

Edward Farina, founder of Alpha Lions Academy, highlighted the liquidity challenges faced by the crypto market. He suggested that part of the market's instability can be attributed to Trump's engagement with the sector.

As Trump shifts his focus toward Bitcoin, he signed an executive order on March 6 to establish a strategic Bitcoin reserve for the United States.

The order mandates the Secretary of the Treasury and the Secretary of Commerce to develop budget-neutral strategies for acquiring Bitcoin. This condition aims to facilitate government Bitcoin purchases without incurring costs for U.S. citizens, potentially reducing public opposition.

In the days following the announcement, Bitcoin's price has experienced volatility. It briefly dropped below $77,000 before recovering.

According to the latest data, Bitcoin is currently trading at $81,440, indicating a 1.09% decline in the last 24 hours and a 3.04% decrease over the past week.