Is $TRUMP Meme Coin a Scam? Here’s Why Crypto Experts Are Wary

Donald Trump Donald Trump Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election President has once again stirred up excitement in the crypto world with his meme coin, TRUMP. Launched just before his second-term inauguration, the coin quickly became a favorite among meme lovers. But just as quickly, Trump distanced himself from it – leaving investors unsure about its future. Now, he’s back with a cryptic Truth Social post, calling TRUMP “the greatest of all.”

The timing is curious, and so is the market’s reaction. Unlike past meme coin frenzies, TRUMP only saw a 12% jump – a surprisingly small move given Trump’s influence.

Is the hype fading, or is something bigger brewing?

Trump’s Endorsement Gives TRUMP a Boost—But Not a Big One

Following Trump’s post, TRUMP’s price rose from $10.93 to $12.25 before settling around $11.91—a 12% increase. While this made it the best-performing coin of the day, many are unsure about its future.

Since its launch in January, TRUMP has experienced major ups and downs. It briefly hit a $1 billion market cap before crashing 75%. Now, the token faces political scrutiny. House Democrats are pushing the MEME Act, a bill led by Rep. Sam Liccardo that aims to ban federal officials and their families from profiting off meme coins. Critics argue that politicians—including Trump—shouldn’t be able to promote cryptocurrencies for personal gain.

No SEC Oversight?

Despite these concerns, the SEC has clarified that meme coins like TRUMP are not considered securities, meaning they are not under its control. This creates a gray area, leaving investors unprotected and raising concerns about possible market manipulation.

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Some analysts remain skeptical. Brett Johnson has called TRUMP a scam, claiming investors have already lost over $12 billion.

https://twitter.com/GOllumfun/status/1903841616369975672

Another analyst, Orlando, warned that $1.5 billion worth of TRUMP tokens are set to be unlocked in April 2025. A sudden release of tokens could flood the market and drive prices down. Some even believe Trump’s recent post was an attempt to boost the price before a big sell-off.

Meme Coin Hype Isn’t What It Used to Be

Even with Trump’s backing, TRUMP’s price increase was small compared to past meme coin frenzies. Analyst Ash Crypto pointed out that in 2021, a single tweet about Dogecoin could make it soar by 400%. He believes the market lacks strong buyers, with investors now more cautious. According to him, crypto needs a big event to bring back interest in altcoins.

https://twitter.com/Ashcryptoreal/status/1903858232835109283

With political scrutiny, upcoming token unlocks, and questions about its legitimacy, TRUMP’s future is uncertain. If Trump keeps promoting it, prices might continue to rise, but a crash is possible if confidence fades. For now, TRUMP remains one of the most controversial meme coins in the market.

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