Donald Trump's Allegedly Legitimate 'TrumpCoin': One Of The 'Most Weird Grifts' Or 'Next-Level Fundraising'?

TrumpCoin DJT/USD continues to stir debate among cryptocurrency traders and observers, with opinions differing on whether the former President is really behind the launch.

What Happened: Lookonchain data highlighted a new wallet purchasing 52.09 million DJT tokens using 1,363 Solana SOL/USD, worth $188,000. The wallet, potentially belonging to an insider, took the step before the announcement of Donald Trump's allegedly official token launch.

Following the news, the same wallet withdrew an additional 1,000 SOL ($138,000) from Binance to buy 6.62 million more DJT tokens. Currently, the wallet holds 58.71 million DJT tokens, valued at $1.56 million, making it the third-largest holder of DJT.

The wallet’s significant accumulation of DJT tokens before the official announcement suggests that the wallet owner may have had prior knowledge of the token launch. If this is the case, it could potentially be a case of insider trading.

Crypto trader Jake Gagain pointed out that a 1% tax goes directly to funding the campaign. He stated, "It’s next-level fundraising & Trump would raise hundreds of millions of dollars from the launch."

Also Read: ‘Trump Coin’ DJT Allegedly Tied To Donald Trump Causes Havoc, Other Trump Meme Coins Plummet 30%

Why It Matters: Crypto trader WazzCrypto expressed skepticism about the DJT token, highlighting several red flags. He described the token as one of the "most weird grifts so far," pointing to a series of questionable actions and characteristics associated with the coin.

Among the red flags that Wazz Crypto noted were the token’s leak by a non-crypto-related news site, the suspicious way the contract address was posted and the unlocked liquidity of the token. He also pointed out that the token was funded from Kucoin, which is not accessible to U.S. citizens, and that the correct pool only functioned on Dextools and a few other platforms.

Wazz also mentioned that other Solana insiders confirmed the scoop, suggesting they might have been in on the coin, which was about 20 days old at the time.

The traders' comments point to the fact that a token associated with a high-profile figure like Donald Trump can be shrouded in such mystery and controversy further emphasizing the unpredictable nature of the crypto space.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: Crypto Allegedly Associated With Donald Trump Shoots Up To $150M In Market Cap — A New Strategy For The Presidential Race?

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image created using artificial intelligence with Midjourney.