Crypto industry questioning whether TRUMP memecoin promoted on the president's social media accounts is a SCAM

By avagrace // 2025-01-21

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President Donald Trump announced a new memecoin called TRUMP on his social media accounts, sparking confusion in the cryptocurrency world.
The TRUMP memecoin launched with an $8.3 billion market cap, becoming the talk of the crypto community.
The memecoin's legitimacy is in question, with some crypto community members skeptical of its authenticity and potential for market manipulation.
The coin's funding origins have raised concerns, as it was seeded with millions of dollars from wallets linked to exchanges that do not cater to U.S. customers.
The TRUMP memecoin's potential success could legitimize crypto in the eyes of skeptics but also raises ethical concerns about a sitting president promoting a speculative asset.

President Donald Trump is promoting a new "memecoin" that has traders in the cryptocurrency world scratching their heads in confusion. Just days before he was inaugurated, Trump's social media accounts on Truth Social and X posted an announcement regarding the release of a memecoin called TRUMP that will be based on the blockchain platform Solana. The posts, which urged followers to "GET YOUR TRUMP NOW," sent shockwaves through the crypto market, but questions about their authenticity have cast a shadow over the project. The TRUMP memecoin, which launched with a staggering $8.3 billion market cap within hours, has become the talk of the crypto community. (Related: Trump administration poised to overhaul crypto regulations with new SEC leadership.) Memecoins are cryptocurrencies often created as jokes or internet memes, with little intrinsic value beyond their cultural appeal. However, some memecoins have stuck around, most notably dogecoin, which initially thrived on hype and community engagement. The TRUMP memecoin, however, is not being regarded as a joke or temporary meme crypto asset. Its launch was accompanied by posts on Trump’s official social media accounts, lending it an air of credibility that most memecoins lack. A website established to help promote the memecoin claims that it is “not political” and has no connection to any political campaign, but its branding and messaging are undeniably tied to Trump’s persona. The token’s rallying cry, “Fight, Fight, Fight,” references immediate response following being shot during an assassination attempt in a 2024 campaign event in Butler, Pennsylvania.

Crypto community concerned about TRUMP memecoin's legitimacy

Yet, the crypto community remains divided. Some point to the coin's infrastructure, which mirrors Trumps previous NFT projects, as evidence of its legitimacy. Others, however, are skeptical, noting that Trump's accounts could have been hacked – a scenario that would make this one of the most audacious crypto scams in history. The TRUMP memecoin's rapid rise has raised several red flags. For starters, 80 percent of the tokens are controlled by two entities: CIC Digital LLC, an affiliate of The Trump Organization, and Fight Fight Fight LLC, a Delaware-registered company formed just days ago. This concentration of ownership raises concerns about market manipulation, as a small group of holders could potentially dump their tokens as soon as the memecoin generates enough for them that immediately selling could make them a hefty profit. This would immediately cause the price of the coin to crash, leaving many initial investors out of luck. Additionally, the coin's funding origins have come under scrutiny. On-chain investigators discovered that the project was seeded with millions of dollars from wallets linked to Binance and Gate.io, two exchanges that do not cater to customers in the United States. For a project tied to an American president, this is an unusual – and potentially problematic – choice. If the posts are genuine, they could signal a seismic shift in Trump’s approach to cryptocurrency. The president has previously dabbled in Web3 projects, including NFT collections, and has expressed support for decentralized finance. A Trump-backed memecoin could rally his supporters around blockchain technology, boosting adoption and legitimizing crypto in the eyes of skeptics. However, it also raises serious questions about the ethics of a sitting president promoting a speculative asset. Cryptocurrencies are notoriously volatile, and memecoins are among the riskiest investments in the space. If TRUMP turns out to be a "pump-and-dump" scheme, it could tarnish Trump’s reputation and undermine public trust in crypto. Watch this video predicting how the value of Bitcoin will continue to increase during Trump's administration and as more nations commit to cryptocurrency use. This video is from the InfoWars channel on Brighteon.com.

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Crypto community concerned about TRUMP memecoin's legitimacy

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