A token supposedly associated with Eric Trump gained around 6,200% in value since its launch last week on Pump.Fun, a site where many memecoins are introduced to the market. In its first day on the market, the token exploded to become a $140 million project, according to information provided by CoinMarketCap.
The astonishing surge of the token has raised serious concerns within the blockchain industry about the possibility that it’s set to undergo a typical “rug pull.” It describes a scam in which the token creators quickly remove liquidity or sell their shares, causing the price of the token to plummet before purchasers are left with coins of no value.
Bubblemaps has drawn attention to the unusual concentration of ownership holdings related to the meme coin. A review of the token’s transactions showed that 10 distinct addresses held the majority of the top 250 wallets. It is a “rug pull in the making,” Bubblemaps posted on X on May 16.
The ownership structure of ERICTRUMP is similar to what preceded the crash of tokens like WOLF. The creators of WOLF were the same people responsible for making the Official Melania Memecoin and the failed LIBRA project. WOLF lost nearly all its value after surging to a $42 million market cap, mostly because a single user held over 82%.
It was found that the creator of the ERICTRUMP token has attempted to launch multiple other Eric Trump tokens on Pump.Fun but none have achieved any significant success. A Bubblemaps researcher has revealed, “the deployer behind the fake Eric Trump token also created three other Eric Trump tokens that failed on Pump.Fun,” according to a Cointelegraph report.
Recent events are occurring in response to increased attention and suspicion surrounding various projects that resulted in major losses. Argentineans continue to remember the LIBRA project as a troubling experiment initiated by their president. Eight insider wallets drained the project of its $4 billion market value within a short period of time. Moreover, a report by Solidus Labs labeled 98% tokens Pump.Fun as a “scam.” It increases the severity of rug pull concerns around the Eric Trump memecoin.
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