Source: TRM; Compiler: 0xjs@金财经

On January 18, then-President-elect Donald Trump launched the $TRUMP token, a token on the Solana blockchain. The creation of Meme coin marks an important step for him in the field of cryptocurrency. The TRUMP token was announced through X and Truth Social and is promoted as a digital asset that embodies community values ​​and “wins.” Based on the Solana blockchain, the $TRUMP token takes advantage of the blockchain’s high-speed, low-cost transaction infrastructure, making its transactions and integration within the ecosystem highly efficient.

Following the launch of $TRUMP, the incoming first lady announced on Sunday that she was also launching her own meme coin on Solana. "The official Melania Meme coin is online!" she posted on the X platform. After the MELANIA token was released, the total market value quickly surged to approximately US$1.6 billion.

The specifics of the TRUMP token include a total supply of 1 billion. At launch, 200 million tokens (20%) will be available for purchase by the public via the official $TRUMP website, with support for payments using debit cards and cryptocurrencies. The remaining 800 million tokens (80%) are allocated to CIC Digital LLC, an affiliate of the Trump Organization. These reserved tokens are locked for 3 to 12 months and subsequently unlocked on a daily progressive unlocking schedule over the next 24 months. This organized release mechanism is designed to reduce the risk of large-scale sell-offs and ensure market stability.

Meme Coin

Meme Coin is a unique type of digital currency that relies on Internet culture, Meme and social trends to develop. Unlike cryptocurrencies such as Bitcoin or Ethereum, which are built on technological innovation or specific practical functions, meme coins derive their value primarily from community engagement and viral appeal. Popularized on platforms like X, Reddit and Telegram, these tokens are often speculative in nature, with market performance driven by hype rather than intrinsic functionality.

Prominent examples of meme coins include Dogecoin (DOGE), which started out as a joke but later became one of the most widely known cryptocurrencies; and Shiba Inucoin (SHIB), often referred to as "Doge" Dogecoin Killer,” with a market capitalization of billions of dollars at its peak. Others, like PEPE, based on the internet meme “Pepe the Frog,” and FLOKI, inspired by Elon Musk’s dog, have gained recognition for their community-driven growth focus on. These tokens demonstrate the speculative and volatile nature of meme coins.

Market Performance and Reaction

Shortly after $TRUMP was launched, its value rose rapidly. The price first rose to about US$10 per coin, then surged to a peak of US$74.59 within a few hours, and then stabilized at around US$52. This rapid growth has pushed the token’s market capitalization to nearly $11 billion, placing it among the valuation leadersCryptocurrencies.

The launch of TRUMP attracted great attention from retail investors and cryptocurrency enthusiasts, thanks to Trump’s global popularity and the cultural appeal of Meme coins. However, this popularity has also prompted scrutiny of potential conflicts of interest and the regulatory framework for such tokens.

Runaway Concerns

Since its launch, the media has raised some questions about whether this may be a “runaway” or “pump and dump” scam. A “runaway” is a cryptocurrency scam in which developers suddenly siphon liquidity from a project, causing the value of the token to plummet and leaving the assets in the hands of investors worthless. And "pump and dump," as the name suggests, means that asset owners artificially inflate the value of an asset and then sell it when the asset reaches its peak.

While the value of the token has dropped to approximately $38 per coin as of January 21, 2025, down 50% from last weekend’s high, $TRUMP does not have the near-term “pull higher” goods” characteristics of the scam. According to the CFTC, "pump and dump" often involves fake news reports, anonymous organizers, and the entire process can be over in minutes.

For example, in October 2021, scammers launched a token called $SQUID, named after the popular Korean Netflix series "Squidward." Its glossy website and polished social media accounts are filled with images of the show, giving the illusion of official approval. Within weeks of $SQUID’s launch, the price surged over 40,000%. But as holders rush to cash out their gains, they are shut out by the smart contracts that underpin the tokens. It turns out that these contracts only allow the creator to sell. When the creators cashed out, the price of $SQUID plummeted from $2,862 to less than a cent, leaving investors with no money back. In an instant, anonymous scammers walked away with millions of dollars, some of which was transferred through mixers and other on-chain money laundering methods.

In addition, well-known and licensed exchanges are offering trading of $TRUMP on their platforms (which is unusual for get-rich-quick Meme coins), and reserved tokens are locked for up to 12 months and gradually unlocked over two years, which reduces the risk of sudden sell-offs that are typical of "runaway" or "pump and dump" operations.

Value trends since launch, data from Coinmarketcap.com

Although previously similar-themed tokens , such as the Solana-based Trump Coin (DJT) launched in June 2024, has been linked to fraudulent activity, but $TRUMP has shown relative stability and transparency since its launch. Despite initial skepticism, there were no sudden liquidity withdrawals or developer misconduct, further supporting the conclusion that $TRUMP does not possess “escape” characteristics, despite operating around the clockThings are changing very quickly in the meme coin space. However, the large number of insider allocations has sparked discussions about volatility and foreign influence in the meme coin market and highlighted the need for regulatory oversight in the evolving meme coin space.

Activities of TRUMP creators

$TRUMP tokens were created on the Solana blockchain at the address 6p6xgHyF7AeE6TZkSmFsko444wqoP15icUSqi2jfGiPN.

Through the TRM forensic tool, we can see details of transactions and other assets related to this address.

The $TRUMP address appears to hold other Meme tokens, such as

"Trump Second Chance" (ETJ3eax4qn5EezzsarNuxEJamD67KXa7z8W4uKEWpump),

""Official Trump Coin" (BAKr8e4iV1Y2c2XJxVFhbMyYnfcRU4dvkaKzQUsepump)

and "Mark Cuban Meme" (AVH97ZaMnUmZYGdSJTEJ6KRSicxGGf7ijQ994rm5pump).

These additional meme coin addresses end with "pump" In conclusion, this most likely means that they were created for trading on the pump.fun platform

It is unclear whether the creators intend to launch these additional Meme coins next, or the creation of $TRUMP. The author also owns two other tokens related to President Trump (which seem to be ready for launch) and the Mark Cuban Meme coin. Is there any special significance in this?

The impact of $TRUMP on the community and cultural level<. p>As a Meme coin, $TRUMP incorporates culture and Narrative, while becoming a speculative asset, also promotes community participation. Its launch has sparked discussions about the intersection of cryptocurrencies, digital assets, and investor behavior. Despite criticism, $TRUMP’s success shows the influence of cultural figures. The growing influence of the cryptocurrency space brings both opportunities and challenges.

Although there is currently no evidence that $TRUMP is a "runaway". scam, but its large internal staffing and cultural prominence point to the need for careful oversight.