Insiders Profit from Trump-Linked Meme Coins

A wallet, suspected to belong to an insider, acquired large volumes of the meme token TrumpCoin (DJT) based on Solana, which the community attributed to Barron, the youngest son of U.S. presidential candidate Donald Trump. Analysts at Lookonchain noted this activity.

Note that a fresh wallet(maybe an insider) spent 1,363 $SOL($188K) to buy 52.09M $DJT before the news that Trump is launching an official token — $DJT on Solana.

After the news, he withdrew another 1,000 $SOL($138K) from #Binance to buy 6.62M $DJT.

He currently holds 58.71M… pic.twitter.com/WaSEfUrXBh

— Lookonchain (@lookonchain) June 18, 2024

According to their observations, the user exchanged 1363 SOL ($188,000) for 52.09 million DJT before the post about the new coin was published. Immediately after the announcement, he purchased an additional 6.62 million DJT for 1000 SOL ($138,000).

The user’s balance now holds 58.71 million DJT ($1.56 million), making him the third-largest holder of the meme coin.

Another trader was less fortunate. He spent 2500 SOL ($342,100) to buy 91,705.6 DJT, but when attempting to sell the token immediately, due to price slippage, he received back only 4.91 SOL ($673). The loss amounted to $341,400 in less than a minute.

What a sad story!

This guy spent 2,500 $SOL($342.1K) to buy 91,705.6 $DJT but only got 4.91 $SOL($673) back when he sold it.

He lost $341.4K in less than 1 minute!https://t.co/jrL0ZGa76Dhttps://t.co/qICy7GZfmj pic.twitter.com/olr78X8snp

— Lookonchain (@lookonchain) June 18, 2024

Analytical services warned of a high likelihood of insider trading with the DJT token. According to Bubblemaps, 67% of the meme coin’s supply is concentrated in one cluster of addresses. 

no way $DJT is actually from Donald Trump

67% of the supply in one cluster

please don’t ?https://t.co/0pOqSIhwHq https://t.co/QGuU7vyeEj pic.twitter.com/qVCG7OAGL1

— Bubblemaps (@bubblemaps) June 17, 2024

Amid such reports and the overall negative market trend, many thematic tokens linked to the former U.S. president fell by more than 30%. 

Large holders of the MAGA (TRUMP) coin sought to profit from this. According to Lookonchain, one address sold 171,842 TRUMP for 414 ETH ($1.44 million) at $8.38 within a day, earning approximately $3.7 million (+1428%).

Many $TRUMP whales sold $TRUMP for profits today!

0x52C0 sold 171,842 $TRUMP for 414 $ETH($1.44M) at $8.38 in the past 24 hours and made ~$3.7M(+1428%) on $TRUMP.https://t.co/ypys8DwW0p

sighduck.eth sold 173,542 $TRUMP for 1.25M $USDC in one trade 8 hours ago and made… pic.twitter.com/9t5F1Qn6za

— Lookonchain (@lookonchain) June 18, 2024

A second whale with the address sighduck.eth sold 173,542 TRUMP for $1.25 million in a single transaction, earning $1.88 million (+1500%).

A third holder exchanged 128,059 TRUMP for 204 ETH ($703,600), gaining a profit of $648,000 (+1164%).

During a fundraising event for his campaign, Donald Trump expressed his intention to become the cryptocurrency president. He positioned himself as a defender of digital assets and criticized Democratic initiatives to regulate the industry.