Trump speculation fuels DJT memecoin 350% rally, but uncertainty remains

Solana-based memecoin DJT is up more than 350% in 24 hours after Pirate Wires reported that it is connected to former US president Donald Trump. The memecoin, which has been around since April, soared to new highs after the media outlet posted that Trump will launch an official token on Solana named DJT, with his son Barron leading the project.

Also Read: Trump vows to end Biden’s crypto crackdown if re-elected

Trump or his campaign team have not confirmed or denied the report, but it is already driving interest into DJT and away from other memecoins inspired by Trump. Meanwhile, the crypto community remains divided on the authenticity of the memecoin’s link to the presidential candidate.

Skepticism trails claims of DJT connections to Trump.

According to data from Birdeye, DJT has seen significant trading activity in the last 24 hours. The token is worth $0.0239, with its 24-hour trading volume above $370 million. Almost 19,000 traders have executed more than 144,840 trades involving the token during the reporting period.

Despite the massive trading activity, Trump’s links to the token remain unsubstantiated. There have been multiple speculations, including one linking the project to convicted pharma executive, Martin Shkreli. However, he denied involvement but claimed it was an official Trump token.

Others have not been so certain about its authenticity. Messari CEO Ryan Selkis said he is 50-50 on whether the token is real or a potential fraud. This view is shared by several others, including the editor-in-chief of Pirate Wires, Mike Solana, who clarified that he did not speak to Trump personally about the token. Mike said:

“getting a lot of inbound here. no, didn’t speak with Trump directly, assumed this was clear (text me though, mr. president). also assume he could rug pull, or pivot, say it’s not true.”

Chart Showing DJT Wallet Centralization (Source: Bubblemaps)

Many have also pointed out the multiple red flags about the token. These include an unlocked liquidity pool, top owners having a 67% concentration, funded from KuCoin, not using a standard contract, and no confirmation from Trump yet. However, some noted that Trump recently ended a post on Truth Social with DJT, which is unusual.

Additionally, those affiliated with other Trump-related tokens have described it as sabotage and psy-op. Steven Steele, the marketing director for the TRUMP Memecoin, described the coin as a scam and fake news.

“If you truly believe that, Trump is launching a SOL shitter with  70% of supply in one cluster w/ Barron as the Dev, you are def apart of the problem & NGMI,” he said.

Nevertheless, wallets are loading up on DJT. On-chain sleuth, Lookonchain, reported that a fresh wallet spent $188,000 (1,363 SOL) to buy 52.09 million DJT just before the news of Trump links broke. After the news, the address bought an additional 6.62 million for $138,000 (1000 SOL). This makes it the third largest holder of DJT, with 58.71 million tokens worth $1.56 million.

Trump-related tokens plunge as whales take profit

With all the attention focused on DJT, the value of other tokens inspired by Trump are falling. TRUMP is down 32% today to $7.188, while TREMP fell 40% to $0.544.

Also Read: Trump: Bitcoin mining may be our “last line of defense”

Following their decline, major holders of these tokens have started selling for profit. Lookonchain reported that several TRUMP whales sold for profit today. 0x52CO sold 171,842 $TRUMP for 414 ETH($1.44 million) at $8.38, making $3.7 million in profits. Sighduck.eth also made $1.88 million in profits after selling 173,542 TRUMP, and 0x35D1 earned a handsome $648,000 gain on their sale of 128,059 TRUMP.