On January 18—just two days before his inauguration—President Donald Trump launched a cryptocurrency called Official Trump (TRUMP). The coin gained instant traction, quickly reaching a market capitalization of nearly $14 billion.
But the excitement didn’t last.
Shortly after Inauguration Day, on-chain data revealed that several large TRUMP holders had offloaded millions of dollars’ worth of the token. The sudden sell-off led to a steep price drop, bringing TRUMP’s market cap down to around $2 billion.
Now, members of the Senate Banking Committee are raising ethical questions. In a January 22 letter to the Treasury Department, the committee cited journalist Jacob Silverman, who called TRUMP coin a “classic meme coin pump-and-dump.“
But is that label accurate?
What Is a Pump-and-Dump?
A pump-and-dump is a common type of investment scam—especially in crypto. It works like this:
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A group of insiders “pumps” an asset with little intrinsic value (often a meme coin or penny stock) by generating hype, typically via social media.
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Retail investors buy in, pushing the price higher.
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The insiders then “dump” their large holdings at inflated prices.
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This often causes the price to crash, leaving everyday investors with significant losses.
Historically, this scheme was associated with small-cap stocks, but today, it’s more common in the unregulated world of cryptocurrency, where it’s often called a “rug pull.”
A famous real-world example is Jordan Belfort, the stockbroker behind The Wolf of Wall Street, who was convicted for orchestrating similar pump-and-dump operations in the 1990s.
How to Spot—and Avoid—a Crypto Pump-and-Dump
According to Alexander Blume, CEO of digital asset RIA Two Prime, the best way to avoid getting caught in a rug pull is to stick with established cryptocurrencies like Bitcoin.
“If you’re trading trending coins, just know you’re gambling,” says Blume. “If you do it anyway, coins in the top 25 by market cap are less likely to rug-pull.”
Here are some red flags Blume says to watch for:
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High concentration of ownership (a few wallets holding most of the supply)
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No clear utility or project roadmap
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Listings only on low-quality or unregulated exchanges
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Overuse of technical jargon or hype language in whitepapers and posts
He also recommends using trusted exchanges like Coinbase, Kraken, Gemini, or Crypto.com to reduce exposure to scams.
So, Is TRUMP Coin a Pump-and-Dump?
The case of TRUMP coin shares some characteristics of a pump-and-dump—but it doesn’t fully meet the definition.
Yes, the coin was heavily promoted on social media, including posts by President Trump himself. And yes, large holders sold off significant amounts shortly after launch, triggering a sharp decline in price.
But in a classic pump-and-dump, the main promoter is also the primary seller. In this case, the Trump Organization still holds 80% of the total coin supply and has not sold any tokens.
This is a key distinction.
The Trump Organization’s stake is also subject to a two-year lockup, preventing it from being sold in the near term. The company, via its affiliate CIC Digital, has described the token as an “expression of support,” not an investment.
However, the coin does raise some concerns:
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Ownership remains highly concentrated
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There is no defined utility or use case
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Future sell-offs, especially if unannounced, could resemble a classic dump
So while the coin’s recent performance includes pump-and-dump-like behavior, calling it a full-fledged scam—at least so far—may be premature.
What’s Next for TRUMP Coin?
Despite its steep drop from peak valuation, TRUMP coin remains above its launch price at the time of writing. However, its future will depend largely on transparency from the Trump Organization and whether the project develops any real-world utility or sticks to symbolism.
For now, investors—especially retail buyers—should proceed with caution. As always in crypto, do your own researchand don’t invest money you can’t afford to lose.
Final Thoughts
The TRUMP coin saga highlights the blurred lines between meme coin mania and market manipulation. Even if a token isn’t an outright scam, the lack of regulation in crypto markets means that investors are often on their own.
As always, caution is your best defense—especially when hype is leading the headlines.
Looking to invest in crypto responsibly?
Check out our guide to top-rated cryptocurrency exchanges and learn how to protect your money in a volatile market.
