- DJT soared 180% on an unconfirmed Trump endorsement rumor.
- The community doubts the authenticity of the claims.
- Analysts point out the high concentration of ownership.
Solana memecoins have become a hotbed of influencers and celebrities, many of whom are issuing their own tokens of dubious quality. As such, it may be only a matter of time before politicians get involved. Not as regulators cracking down on it, but to cash in on the trend.
Due to that environment, it is no wonder that many jumped on the rumors that former US President Donald Trump will announce his own memecoin on the Solana blockchain. Based on these unconfirmed rumors, the DJT token surged. However, whether or not the token actually is Trump’s, analysts have pointed out serious concerns with the token, even pointing to insider trading.
DJT Token Raises Serious Concerns About Its Ownership
The so far relatively unknown DJT token saw an unprecedented surge after unconfirmed reports suggested Trump’s direct involvement. Despite multiple critics expressing skepticism about these claims, the token was up 180%.
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However, analysts soon discovered serious issues with the token’s supply. Namely, a blockchain analytics tool, Bubblemaps, revealed that 67% of the DJT token supply is concentrated in one cluster, a set of interconnected wallets likely with the same owner.
This concentration is very high and suggests a real risk of market manipulation or insider trading. It shows that one user likely bought up much of the token’s supply before the news about the Trump involvement broke, potentially profiting immensely from insider knowledge.
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When a few traders own that much supply, they are much more likely to sell off a substantial amount of tokens compared to retail investors. This exposes the actual retail investors to risks, which apply whether or not DJT is actually Trump’s token.
Is DJT Really Trump’s Token?
The initial claim that DJT is Trump’s came from Pirate Wires on X (formerly Twitter) on Monday, June 17, claiming that Trump is launching his own token. It also said that his youngest son Barron would spearhead the venture.
The claims were initially met with skepticism, prompting the editor of Pirate Daily, who goes by Mike Solana on X, to clarify that they had not spoken to Trump directly.
However, soon after these reports a convicted pharmaceutical executive Martin Shkreli hosted an X space claiming that DJT is the real Trump token. He later pointed to a tweet by Bo Loudon, allegedly Barron Trump’s friend, who also confirmed DJT’s status.
However, whether or not DJT is actually Trump’s venture, a venture of people loosely tied to the Trump family, or not related to Trump at all, the risks are still there.
On the Flipside
- While DJT went up, other tokens referring to Trump dropped significantly in the same period. Both the MAGA (Trump) token and Doland Tremp (TREMP) dropped 40% after the DJT news broke.
- In his posts and X spaces, Shkreli made sure to clarify that he was not urging anyone to buy the token.
Why This Matters
While a great source of revenue for the team, insider trading can cause significant losses for investors. So far, regulators have not cracked down on memecoins, making education the only protection for traders against insiders taking advantage of them.
Read more about another celebrity token accused of insider trading:
FLOCKA Memecoin Sees Rapid Rise Amid Insider Trading Concerns
Read more about Solana validators profiting at the expense of network users:
Solana Validators Profit as Users Lose $30M in ‘Sandwich Trades
