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Cryptocurrency News Articles

The TRUMP token is facing new scrutiny after its developers quietly withdrew $4.6 million in USDC from the project’s liquidity pool

Apr 17, 2025 at 03:10 pm

The TRUMP token is facing new scrutiny after its developers quietly withdrew $4.6 million in USDC from the project’s liquidity pool

The TRUMP token is facing new scrutiny after its developers quietly withdrew $4.6 million in USDC from the project’s liquidity pool

The TRUMP token is facing new scrutiny after its developers quietly withdrew 4.6 million USDC from the project’s liquidity pool ahead of a massive token unlock.

According to blockchain analysts at Lookonchain, the funds were tracked as they moved from Solana to Ethereum and were later deposited into Coinbase Prime—a platform typically used for high-volume transactions and institutional storage. The timing—just hours ahead of the scheduled release of 40 million TRUMP tokens—has rattled investor confidence.

Liquidity Exit Stokes Sellsoff Fears

The move comes as TRUMP prepares to unlock 20% of its total token supply, an event that could amplify sell pressure, especially with new investors buying the token at a higher price.

Immediately following the liquidity exit, TRUMP saw a 12% price drop, falling from $0.05 to $0.044 in under an hour, before recovering slightly. Trading volume also more than doubled during the panic, indicating rising tension among holders.

Concerns over TRUMP’s tokenomics and project structure aren’t new. Earlier reports detailed irregular wallet activity, including developer-linked accounts offloading large amounts of tokens without prior purchase history. One wallet reportedly sold $18 million worth of TRUMP, furthering fears of centralized control and insider advantage.

Moreover, a single wallet holds 80% of the token’s total supply, making the ecosystem highly vulnerable to concentrated decision-making and possible coordinated exits.

Trump Family’s Crypto Push Complicates Narrative

Adding to investor unease is the Trump family’s growing involvement in blockchain ventures. A new project—an Ethereum-based real estate game modeled after Monopoly—is scheduled to launch this month, led by Trump associate Bill Zanker.

Branded under the “World Liberty Financial” umbrella, the Trump-backed Web3 initiative includes several family members, including Donald Jr., Eric, and Barron Trump, who are listed as official advisors. While the real estate game aims to introduce play-to-earn mechanics, critics argue the effort appears timed alongside TRUMP token developments and may signal a broader monetization strategy using the family’s brand recognition.

🎲 @realDonaldTrump‘s family enters Web3 gaming with a new real estate game inspired by Monopoly GO, expanding their footprint in blockchain and digital assets. #Web3 #CryptoGaminghttps://t.c

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