Is TRUMP On Its Way to a Rug Pull? Analyzing the Team's Recent Transactions

On May 10, a wallet linked to the Trump coin team transferred 3.5 million TRUMP tokens—worth over $52 million—to centralized exchanges. This move has raised alarm among investors, some of whom now wonder if this is a sign of a potential rug pull. 

The team insists it was a planned move to support liquidity. Still, the timing and scale of the transaction have led many in the crypto community to ask important questions about the future of TRUMP and the integrity of its development team.

Large Token Transfers Raise Red Flags

According to blockchain analysis platform Lookonchain, this is the second large transaction in less than two weeks. On April 29, the same wallet moved 1.35 million TRUMP tokens, valued at more than $19 million, to exchanges including Binance, Bybit, and OKX. 

Large transfers to exchanges often signal an intention to sell, especially when done without clear prior communication.

While it is common for token teams to move funds to support project operations, the lack of transparency in timing and messaging can create confusion. In this case, the statement from the Trump coin team came after the transfer was noticed by blockchain trackers—not before it.

Read also: Trump Coin News, Updates, and Price Prediction | Bitrue TRUMP Official Site

Project Defends the Move as a Liquidity Measure

In response to concerns, the TRUMP coin team posted on X (Twitter), explaining that the transfer was intended to support liquidity operations and ensure that TRUMP remains accessible for both buyers and sellers. 

The post emphasized growing demand for the token and framed the transfer as a positive move to meet market needs.

However, critics argue that the explanation was reactive rather than proactive. If the move was planned and legitimate, some believe it should have been announced in advance to avoid confusion. 

For comparison, other memecoin projects like MELANIA have carried out months of sales without offering any public explanation, which has only deepened skepticism in the space.

Price Response and Investor Sentiment

Despite the reassurance from the TRUMP team, the token’s price has shown signs of a correction. 

TRUMP dropped over 2 percent on the day of the announcement, even though it has gained more than 10 percent over the past week and is up more than 77 percent in the last 30 days. The current trading price sits above $14, far below its previous peak.

Investor sentiment remains mixed. Some holders continue to believe in the token’s future, especially after the team offered exclusive rewards such as a dinner with the President for top holders. This move attracted over 100,000 new wallet addresses to the project. 

But for others, the recent transactions have increased doubts about the project’s long-term stability.

Read also: Trump ($TRUMP) Coin Price Prediction for the Third Week of May

Who Profits from TRUMP Coin?

Concerns are further amplified by data suggesting that a small group of insiders have already made substantial profits. According to a report cited by CNBC and compiled by Chainalysis, the creators of TRUMP have made around $320 million from trading fees alone. Of that, only 5 percent was paid to Meteora, the decentralized platform hosting the token.

Additionally, 58 wallets have reportedly earned over $10 million each, totaling more than $1.1 billion in combined profits. In contrast, more than 764,000 wallet addresses have lost money by purchasing the token, with most of these losses affecting individual retail investors.

These numbers reveal a sharp imbalance in profit distribution, leading some observers to question the fairness of the project and whether the recent transactions are part of a broader strategy to extract value at the expense of new entrants.

Read also: Is TRUMP About to Crash Again? Looking at Sentiments Around the Community

Political Ties Could Undermine Crypto Progress

Adding to the tension is the growing concern over the President’s involvement with cryptocurrency projects like TRUMP. While President Trump has been known to support deregulation in the crypto sector, critics argue that personal financial interests may be influencing policy.

A report from the State Democracy Fund claims that the Trump family’s net worth has grown by $2.9 billion due to its crypto holdings. It also stated that approximately 40 percent of this net worth is now tied to cryptocurrencies, including memecoins and NFTs.

This connection has sparked political backlash. A recent stablecoin bill failed in the Senate, with some pro-crypto lawmakers withdrawing support. Although they cited issues with the bill’s content, many believe that the controversy surrounding the President’s financial interests contributed to the opposition.

If distrust grows, it could harm future crypto legislation and discourage bipartisan cooperation on blockchain regulation. This would be a setback not only for TRUMP coin but for the entire cryptocurrency ecosystem in the United States.

FAQ

What is a rug pull in crypto?

A rug pull occurs when the team behind a project withdraws significant funds or abandons the project after attracting investor money, often leaving holders with worthless tokens.

Is TRUMP coin still a good investment?

That depends on risk tolerance. While the token has gained recently, concerns about insider activity, political ties, and market transparency should be carefully considered.

What is TRUMP's coin? 

TRUMP coin ($TRUMP) is a meme cryptocurrency related to Donald Trump, and it exists on the Solana blockchain.  

How can I buy TRUMP crypto? 

You can buy TRUMP coin on Revolut's crypto platform. You'll need to create an account and add money to it first.