TRUMP memecoin floods Solana DEXs as insider trading claims emerge.

Allegations of suspicious trading activity have emerged around the Solana-based Official Trump (TRUMP) memecoin as its market cap skyrocketed to $42 billion, attracting a surge of retail investors.  

On January 18, on-chain analytics firm Bubblemaps uncovered a wallet funded with $1 million just four hours before the TRUMP token’s launch. This wallet reportedly purchased $5.9 million worth of TRUMP tokens within the first minute of trading and later sold $20 million while retaining $96 million in tokens. Further analysis revealed the tokens were distributed through a series of wallets, with active selling now occurring on Solana’s decentralized exchanges (DEXs).  

The trading patterns have raised concerns about potential market manipulation, even as the TRUMP memecoin dominates headlines.  

Preetam Rao, CEO of Web3 security firm QuillAudits, expressed skepticism over the token’s structure and purpose. “Eighty percent of the supply is locked under CIC Digital, owned by the Donald Trump Revocable Trust, which previously launched Trump NFT Trading Cards. The website claims it’s ‘not an investment but a show of support,’” Rao said.  

He noted that the top 10 holders control 89.06% of the supply, with no clarity on the liquidity pool’s burn status. Rao also pointed out the token’s launch during an Asian morning time zone, suggesting it might be a profit-driven venture.  

“We see evidence of insider trading. It could be a rug pull, but it might also set the stage for innovation,” Rao added.  

According to CoinGecko, TRUMP trading volumes surged, with Bitget leading at $864.9 million, MEXC at $842.7 million, and KuCoin at $445.2 million. As of now, TRUMP is up 194% in the last 24 hours, trading at $54.62.  

The hype surrounding TRUMP has spurred record activity within Solana’s ecosystem. Solana’s largest DEX, Raydium, recorded $25.07 million in fees and $2.85 million in revenue — an all-time high, according to DefiLlama.  

Additionally, the MEME trading tool GMGN processed $153 million in Solana transactions, generating $1.52 million in fees, while the Moonshot crypto trading platform handled nearly $400 million in volume over 12 hours. This marked a record for fiat on-ramp usage, bringing over 200,000 new users on-chain.  

Amid the frenzy, some speculated about a potential “USA coin,” but Eric Trump dismissed the rumors, stating no such project is in development. The Bitcoin community has criticized the TRUMP memecoin, labeling it opportunistic and misaligned with Bitcoin’s principles.  

Brandon Quittem, vice president of revenue at Swan Bitcoin, called it “an extreme case of shitcoinery” that contrasts sharply with Bitcoin. Pierre Rochard, vice president of research at Riot Platforms, emphasized Bitcoin’s fundamentally different design. Will Cole, a Bitcoin advocate and product lead at Zaprite, described the memecoin as “pump-and-dump-as-a-service,” transferring wealth from younger generations to older ones.