Tracing $TRUMP: The Latest Memecoin on Solana

On January 18, then President-elect Donald Trump launched the $TRUMP token — a memecoin on the Solana blockchain — marking a significant step into the cryptocurrency space. Announced through X (formerly Twitter) and Truth Social, the token was promoted as a digital asset embodying community values and “winning.” Built on Solana, the $TRUMP token leverages the blockchain's high-speed, low-cost transaction infrastructure, making it efficient for both trading and integration within the ecosystem.

In the wake of the $TRUMP launch, the incoming first lady announced Sunday that she had launched her own memecoin on Solana. “The Official Melania Meme is live!” she posted on X. The token quickly soared to a total value of about $1.6 billion after its release.

The token’s specifications included a total supply of 1 billion tokens. At launch, 200 million tokens (20%) were available for public acquisition through the official $TRUMP website, supporting payments via debit cards and cryptocurrencies. The remaining 800 million tokens (80%) were allocated to CIC Digital LLC, an affiliate of The Trump Organization. These reserved tokens were locked for periods of three to 12 months, followed by a gradual daily unlocking schedule over the subsequent 24 months. This structured release mechanism aims to mitigate risks associated with large-scale sell-offs, ensuring market stability.

Memecoins

Memecoins are a unique category of digital currency that thrive on internet culture, memes, and social trends. Unlike cryptocurrencies such as Bitcoin or Ethereum, which are built on technological innovations or specific utilities, memecoins derive their value primarily from community engagement and viral appeal. Popularized on platforms like X, Reddit, and Telegram, these tokens are often speculative in nature, with their market performance driven by hype rather than inherent functionality.

Prominent examples of memecoins include Dogecoin (DOGE), which began as a joke but became one of the most widely recognized cryptocurrencies, and Shiba Inu (SHIB), often referred to as the "Dogecoin killer," which reached a multi-billion-dollar market cap at its peak. Others, such as Pepe (PEPE), based on the internet meme Pepe the Frog, and Floki Inu (FLOKI), inspired by Elon Musk’s dog, gained significant attention for their community-driven growth. These tokens demonstrate the speculative and volatile nature of memecoins.

TRM recently broke down the launch of the Hawk Tuah memecoin here.

Market performance and reception

Shortly after its launch, $TRUMP experienced a meteoric rise in value. Starting at approximately USD 10 per token, its price surged to a peak of USD 74.59 within hours before stabilizing around USD 52. This rapid growth propelled the token's market capitalization to nearly USD 11 billion, placing it among the leading cryptocurrencies by valuation. 

The launch attracted significant interest from retail investors and crypto enthusiasts, driven by Trump’s global recognition and the cultural appeal of meme coins. However, this popularity also brought scrutiny regarding potential conflicts of interest and the regulatory framework surrounding such tokens.

Rug pull concerns

There have been some questions in the media since the launch as to whether or not this could be a “rug pull” or “pump-and-dump” scheme. Rug pulls are a type of cryptocurrency scam where developers abruptly withdraw liquidity from a project, causing the token’s value to crash, leaving investors with worthless assets. Pump-and-dumps, like the term implies, occur when the owners of an asset artificially inflate the value only to sell off when the asset reaches its peak.

As of January 21, 2025 — while the value has dropped to around USD 38 per token, down 50% from last weekend’s highs — $TRUMP does not have the hallmarks of recent pump-and-dump schemes. According to the US Commodities Futures Trading Commission, pump-and-dumps often involve false news reports, anonymous organizers, and can be over in a matter of minutes. 

For example, in October 2021, scammers launched a token called $SQUID, named after the popular Korean Netflix show Squid Games. Its flashy website and slick social media accounts, replete with images from the show, falsely suggested official endorsement. Within weeks of $SQUID’s launch, its price surged by over 40,000%. But when holders rushed to realize their gains, they were locked out by the smart contracts underpinning the tokens. These, it turned out, allowed only the creators to sell. When the creators cashed out, $SQUID’s price collapsed from USD 2,862 to a fraction of a cent — pulling the rug out from under investors’ feet. Within moments, the anonymous scammers walked away with millions, some of which was moved through mixers and other on-chain laundering techniques.

In addition, reputable and licensed exchanges are offering access to $TRUMP on their platforms for trade (not typical of a fly-by-night memecoin and the structured release of reserved tokens). These tokens are locked for up to 12 months and gradually unlocked over two years — reducing the risk of sudden sell-offs, a hallmark of rug pulls or pump-and-dumps.

While previous tokens with similar themes — such as the Solana-based TrumpCoin (DJT), launched in June 2024 — were associated with fraudulent activities, $TRUMP has demonstrated relative stability and transparency since its launch. Despite initial skepticism, the absence of sudden liquidity withdrawals or developer malfeasance further supports the conclusion that $TRUMP does not have the hallmarks of a rug pull, although things move very quickly in the 24/7 memecoin space. Nevertheless, the substantial insider allocation has sparked discussions about the volatile memecoin market and foreign influence, and highlights the need for regulatory oversight in the evolving memecoin landscape.

The creator’s activity

The $TRUMP token was created on the Solana blockchain, at address 6p6xgHyF7AeE6TZkSmFsko444wqoP15icUSqi2jfGiPN. Using TRM Forensics, we can see detailed information about transactions and other assets associated with the address. The $TRUMP addresses appears to hold other memecoin tokens, such as “Trump Second Chance” (ETJ3eax4qn5EezzsarNuxEJamD67KXa7z8W4uKEWpump), “Official Trump Coin” (BAKr8e4iV1Y2c2XJxVFhbMyYnfcRU4dvkaKzQUsepump), and “Mark Cuban Meme” (AVH97ZaMnUmZYGdSJTEJ6KRSicxGGf7ijQ994rm5pump).

The additional meme token addresses end in “pump,” which likely means that they were created to be traded in the pump.fun platform. It is unknown whether the creators intend to launch the additional memecoins next, or if there is significance that the creators of $TRUMP also have two additional tokens associated with President Trump — seemingly ready to launch (as well as the Mark Cuban coin).

TRM Labs’ role in monitoring $TRUMP

TRM Labs plays a pivotal role in ensuring the integrity and transparency of transactions involving $TRUMP and other SPL tokens on the Solana blockchain. Its blockchain intelligence tools offer:

• Advanced transaction analysis: TRM maps every $TRUMP transaction, tracking fund flows and detecting anomalies such as rapid transfers, large-volume trades, or wash trading.
• Risk attribution: By linking on-chain activity to known entities, TRM identifies wallets associated with high-risk behavior, including connections to sanctioned addresses or illicit activity.
• Fraud detection: TRM’s machine learning algorithms analyze $TRUMP’s trading patterns to detect manipulative schemes, such as pump-and-dump operations, helping protect market participants.
• AML compliance: TRM equips businesses and regulators with the tools to meet anti-money laundering (AML) and Know Your Customer (KYC) requirements, ensuring that $TRUMP activity adheres to global financial crime standards.

How TRM supports broader SPL token monitoring

TRM’s capabilities extend beyond $TRUMP, providing comprehensive coverage of all Solana Program Library (SPL) tokens. These tokens are the backbone of Solana’s ecosystem, enabling applications in decentralized finance (DeFi), non-fungible tokens (NFTs), and more. TRM’s SPL token analysis includes tracking lifecycle events such as token issuance, distribution, and secondary market transactions. Its real-time dashboards and alerts empower users to address risks quickly, fostering trust and transparency across the ecosystem.

The community and cultural impact of $TRUMP

As a meme coin, $TRUMP taps into cultural and political narratives, fostering community engagement while serving as a speculative asset. Its launch has spurred conversations about the convergence of politics, digital assets, and investor behavior. Despite criticisms, $TRUMP’s success demonstrates the growing influence of cultural figures in the cryptocurrency space, highlighting both opportunities and challenges.

The $TRUMP token's structured launch, combined with TRM Labs’ robust monitoring capabilities, underscores the importance of transparency and risk management in the evolving cryptocurrency landscape. While $TRUMP has not shown evidence of being a rug pull, its substantial insider allocation and cultural prominence highlight the need for meticulous oversight. TRM ensures that tokens like $TRUMP can be traded and utilized responsibly, safeguarding the integrity of Solana’s dynamic blockchain ecosystem.