The latest meme coin launch by incoming US President Donald Trump seems to have upset the cryptocurrency industry with some speculators labeling it a scam.
One of them, Coffeezilla, a YouTuber popular for exposing shady dealings, has alerted people in view of their concerns that insiders get 80% of this TRUMP coin supply, which means only a tiny fraction is available to the public, which could lead to a market manipulation scenario.
According to Coffeezilla, this structure shows the project as more of a “grift” than a legitimate crypto venture.
Insiders Control The Majority
One major red flag is the concentration of 80% of Trump Coin’s total supply. This disproportionate allocation means that a select group of people, likely developers or influencers involved with the coin, could control the vast majority of the token’s value. For the general public, this spells trouble, as the market could be easily manipulated by those holding most of the tokens.
Red Flags Concerning Transparency
But given the fast-speed promotion, issues of transparency revolve around actual utility. The notion that a meme coin would carry significant weight in the market is unsettling for some analysts, especially when it lacks clear backing or innovation.
While Trump Coin has been verified on the Phantom Wallet, critics argue that this doesn’t necessarily mean it’s a safe investment.
My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING! Join my very special Trump Community. GET YOUR $TRUMP NOW. Go to https://t.co/GX3ZxT5xyq — Have Fun! pic.twitter.com/flIKYyfBrC
— Donald J. Trump (@realDonaldTrump) January 18, 2025
The project has been criticized for possibly taking advantage of its investors. Coffeezilla’s criticism focuses on the fact that such ventures usually take advantage of the excitement and hype of popular figures such as billionaire Donald Trump, making it easier to encourage people to invest in tokens of little value. Critics argue that this is more about making fast money for the insiders rather than creating long-term value for the crypto community.
Potential Impact On Crypto Reputation
Attention given to Trump Coin may also mark a stain to the crypto sector. Projects like this, which focus on short-term gains, often deter new investors from taking the crypto market seriously.
Furthermore, the whole launch may grab the attention of regulators, given that they’re keeping a close eye on meme coins more closely than ever. It seems that this new venture will set off controversy and debate in a digital currency landscape already inflamed by volatility and other related factors.
Coffeezilla is well-known for his stinging exposés of purported cryptocurrency scams, such as Andrew Tate and Hawk Tuah Girl.
Featured image from AP, chart from TradingView