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

Donald Trump Donald Trump Donald J. Trump is a US-based entrepreneur, Pro-crypto Politician, and the 45th and 47th President of the United States of America. He understands the importance and needs of the modern fintech world, and people look up to him as a dominant pro-crypto leader.   Quick Facts   Full name Donald John Trump Birth 14-06-1946, New York, United States Nationality American Education BS from the University of Pennsylvania Known For Businessman, Pro-Crypto Politician   Once doubtful about Bitcoindominance, he said in a tweet in 2019, “I am not a fan of Bitcoin", but now has a significant amount of cryptocurrency holdings in his kitty. He has also signed an Executive Order to establish a Strategic Bitcoin Reserve, which highlights his commitment to the future of cryptocurrency.   Donald Trump - Career Highlights & Events   2016 – Elected as the 45th President of the United States from the Republican Party.   2017 – Signed the Tax Cuts and Jobs Act, impacting investment environments   2019 – Criticized Bitcoin and Libra on X, dubbing them as "not money"   2024 – Campaign signals potential openness to crypto-friendly reforms   2025 –  Elected as the 47th President of the United States from the Republican Party.   A meme coin, $TRUMP, is associated with Donald Trump, which is listed on the Solana blockchain platform. His family also backs World Liberty Financial (WLF), a crypto venture. 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.

• Also Read :
•   Trump’s Crypto Advisor Explores Gold-to-Bitcoin Swap— BTC Eying $112k!
• ,

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

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.

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.

FAQs