The TRUMP meme coin, a Solana-based token linked to President Donald Trump, has raised concerns among investors after its developers withdrew $4.6 million in USDC from the project’s liquidity pool on April 15, 2025. This move occurred just days before a major token unlock scheduled for April 17, 2025, which will release 40 million TRUMP tokens—worth approximately $320 million at the time—into circulation, representing 20% of the circulating supply. The withdrawn USDC was bridged from Solana to Ethereum and deposited into Coinbase Prime, a platform typically used by institutional investors.
On-chain data from LookOnChain and PeckShieldAlert confirmed the transaction, sparking speculation of a potential sell-off or “rug pull” within the crypto community. Some labeling it a “classic degen exit move” and others suggesting it could be a repositioning rather than an outright exit. The TRUMP token, trading at around $7.84-$8.00, saw a 2.72% drop in the 24 hours following the withdrawal, alongside a 7% price decline on centralized exchanges and a 150% surge in trading volume, indicating heightened market activity and potential panic selling. Despite this, the token retains over $327 million in decentralized liquidity, making it one of the most funded meme coins.
The timing of the withdrawal, coinciding with the unlock and the Trump family’s broader Web3 ventures under World Liberty Financial (including a planned real estate-themed crypto game), has fueled skepticism. Critics point to patterns seen in other celebrity tokens like MELANIA, where liquidity was drained post-hype, leading to significant price drops. The developer’s wallet still holds over 15.3 million TRUMP tokens, suggesting potential for further market impact. Investors are advised to monitor developer wallets and price movements closely, as the unlock could amplify selling pressure.
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No official statement from the TRUMP team or Bill Zanker, a Trump associate linked to the project, has clarified the intent behind the withdrawal. The crypto community remains divided, with some seeing it as a bearish signal and others noting the token’s resilience, having gained 6% in the past week despite underperforming other Solana meme coins.
The release of 40 million TRUMP tokens, representing 20% of the circulating supply and valued at approximately $320 million, significantly increases the token’s circulating supply. Token unlocks typically reduce scarcity, often leading to bearish price action as investors anticipate dilution. Analysts, such as Sidney Powell of Maple Finance, note that this could depress TRUMP’s price, as sustaining current levels requires substantial new demand. The removal of $4.6 million in USDC from the liquidity pool reduces the depth of the market, making TRUMP more susceptible to price swings.
The immediate 10-12% price drop following the withdrawal (from ~$9 to ~$7.95-$8.01) reflects this heightened volatility. On-chain data showing 706 wallets selling versus 456 buying further indicates selling pressure, though whale buying may temper declines temporarily. The timing of the liquidity pull, just before the unlock, has fueled speculation of a potential sell-off or “rug pull,” eroding trader confidence.
The withdrawal of significant liquidity and its transfer to Coinbase Prime, a platform for institutional investors, has sparked accusations of a possible “rug pull” or insider cash-out. While the developers still hold over 15.3 million TRUMP tokens, the lack of transparency or an official statement explaining the move heightens distrust. With 80% of TRUMP’s 1 billion token supply controlled by Trump-affiliated entities (CIC Digital LLC and Fight Fight Fight LLC), the project already faces criticism for potential conflicts of interest, given Donald Trump’s role as president and regulator of the crypto industry. The liquidity withdrawal exacerbates these concerns, suggesting insiders may be prioritizing personal gains over investor interests. Ethics experts, such as Norman Eisen, have called Trump’s crypto ventures a profound conflict of interest.
The MELANIA meme coin, launched by Melania Trump, experienced similar liquidity withdrawals and a sharp price decline (to $0.42), reinforcing perceptions of speculative manipulation in Trump-related projects. This pattern undermines the credibility of both tokens and may deter long-term investment. Meme coins like TRUMP are highly speculative, often attracting retail investors drawn by hype rather than fundamentals. The liquidity pull and unlock increase the risk of losses for late entrants, as seen in the TRUMP token’s 89% decline from its all-time high of ~$73 to ~$7.73 by April 2025.
A Bloomberg analysis highlighted that small traders lost $2 billion trading TRUMP in its first two days, while insiders profited significantly from fees. On-chain data indicates that whale wallets are driving most buying activity, potentially stabilizing the price short-term but also signaling manipulation risks. Smaller wallets selling off suggest retail investors are exiting, possibly due to fears of further declines. Unlike community-driven meme coins like Dogecoin, TRUMP lacks a strong cult following or intrinsic utility, relying heavily on Trump’s brand and whale activity.
The ongoing unlock schedule (760 million tokens over three years) and insider control may deter investors seeking sustainable projects. The TRUMP token’s controversy reinforces the perception of meme coins as speculative and prone to manipulation. Critics, including crypto executives like Erik Voorhees, argue that Trump’s involvement undermines the industry’s credibility, especially as it seeks mainstream legitimacy. Trump’s dual role as a crypto participant and regulator raises concerns about loose oversight.
Ethics watchdogs, such as Danielle Brian, warn that his financial stake in TRUMP could disincentivize crackdowns on fraudulent practices, potentially inviting stricter regulations if scams proliferate. The TRUMP launch initially pulled liquidity from other altcoins, and similar moves (e.g., MELANIA’s launch) disrupted market dynamics. While this drew attention to Solana-based meme coins, it also highlighted the fragility of liquidity in speculative assets, potentially affecting other projects during major unlocks.
TRUMP’s unique user base, including Trump supporters and first-time crypto buyers, may sustain demand despite bearish pressures. The token’s branding as an “expression of support” could maintain a niche following, though its long-term appeal is uncertain. The project retains $327.6 million in liquidity for its main decentralized pair, which could buffer against panic selling. World Liberty Financial, linked to the Trump family, holds significant USDC and ETH reserves, potentially stabilizing operations.
Investors face heightened risks of price declines and volatility, while the project’s credibility is strained by rug pull fears and ethical concerns. The broader meme coin market may suffer reputational damage, and regulatory scrutiny could intensify. However, Trump’s brand and residual liquidity might mitigate some losses, particularly among loyal supporters. Investors should exercise caution, conduct thorough due diligence, and monitor whale activity and developer communications closely, as the unfolding situation underscores the speculative risks inherent in meme coins.