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TRUMP Meme Coin Insiders Dump $52M Sparking Backlash

TRUMP Meme Coin Insiders Dump $52M Sparking Backlash
TRUMP Meme Coin Insiders Dump $52M Sparking Backlash

Key Points

  • TRUMP meme coin insiders moved $52M to exchanges.
  • The team claims the move supports liquidity.
  • Insiders made over $320M while most holders are at a loss.
  • Only 58 wallets gained $1.1B, raising fairness concerns.

The TRUMP meme coin, a cryptocurrency themed around former U.S. President Donald Trump, is back in the spotlight for all the wrong reasons. On May 10, on-chain analytics firm Lookonchain revealed that insiders transferred 3.5 million TRUMP tokens, worth over $52 million, to centralized exchanges—Binance, OKX, and Bybit.

According to the data, Binance received the largest share of the tokens, with 1.5 million TRUMP worth $22 million. OKX got $15 million worth, while Bybit handled about $7.5 million.

Trump Meme Coin Token Transfers. Source: Lookonchain - Techtoken

Trump Meme Coin Token Transfers. Source: Lookonchain – Techtoken

The project’s team claimed the transfers were a part of “liquidity operations” meant to maintain smooth trading and access for both buyers and sellers. They added that the tokens came from a liquidity wallet created during the coin’s launch and that all recently unlocked tokens have been relocked for another 90 days.

“Demand for $TRUMP has been tremendous,” said the team. “This transfer ensures continued availability for buyers and sellers.”

However, this explanation hasn’t eased concerns. Many see it as a potential red flag similar to earlier questionable crypto events like the Trump XRP scandal, where political connections and insider strategies clouded investor transparency.

Insiders Cash Out While Majority Hold Losses

Despite public reassurances, reports are painting a starkly different picture. According to CNBC, citing Chainalysis data, insiders behind the TRUMP meme coin have earned over $320 million through trading fees alone.

The gap between top beneficiaries and everyday holders is alarming. Out of more than 2 million wallets, roughly 760,000 wallets are at a loss, suggesting that the token’s value flow is highly concentrated.

Even more concerning: Only 58 wallets have made over $10 million each, amassing a total of $1.1 billion in profits. These stats highlight the growing concern that TRUMP meme coin may have been structured to enrich a small group of early players, much like what was seen in other controversial crypto ventures such as Trump’s crypto profits.

TRUMP started strong, shooting up to $77 on its debut. But now, it’s trading around $14—an 86% crash that’s left most holders reeling. While some still chase quick profits, others are realizing that meme coins can have serious financial consequences when transparency is lacking.

Growing Pattern of Political Influence in Crypto

This isn’t the first time politics and crypto have collided in controversial ways. From Ripple’s $75M lawsuit win to the recent Genius Act failure which aimed to introduce new crypto oversight laws, it’s clear that blockchain projects are increasingly tied to political narratives.

In the case of TRUMP meme coin, the branding around a polarizing political figure has drawn both massive attention and sharp criticism. The movement of such a large volume of tokens, paired with questionable profit distributions, adds fuel to growing concerns about manipulation and exploitation within politically linked tokens.

Meanwhile, as genuine crypto investors turn their attention to more regulated opportunities—like the ongoing surge in Bitcoin ETF inflows—the market may begin to draw a line between speculative meme coins and long-term investments.

Whether the TRUMP meme coin survives this storm or not, the situation underscores the importance of transparency, fair tokenomics, and accountability in crypto projects. Without those elements, even the most viral tokens risk crashing under the weight of their hype.

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Abhijeet
Abhijeet is a Web3 and crypto writer who brings blockchain concepts to life with simple, engaging, and SEO-driven content. From DeFi and NFTs to emerging blockchain trends, he crafts stories that resonate with readers and build authority for Web3 brands.

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