Summary:
- The TRUMP coin team transferred nearly $20M in tokens to exchanges ahead of a key investor dinner.
- The move sparked backlash, especially after the token surged 70% in one week.
- Senators Elizabeth Warren and Adam Schiff are calling for an ethics probe.
- Despite price gains, derivatives data shows declining trader confidence.
TRUMP Coin Team Sells $19.6M Before High-Stakes Dinner
In a bold and controversial move, the TRUMP coin team sold nearly $20 million worth of tokens just weeks before a much-anticipated private dinner hosted by Donald Trump himself. The selloff, which occurred on April 29, was tracked through on-chain data provided by Lookonchain and involved transfers to major centralized exchanges such as Binance, OKX, and Bybit.
This timing is particularly noteworthy, as the dinner—set for May 22—has been touted as an exclusive event for the top 220 TRUMP coin holders. The proximity of the mass token dump to the dinner date has raised eyebrows within the crypto community, with many suggesting that this could be a case of insider activity aimed at profiting from upcoming market hype.
70% Token Price Surge Sparks Market Manipulation Concerns
The TRUMP token has seen an explosive rally of nearly 70% over the past week, largely fueled by speculation surrounding the upcoming dinner. As excitement spread across the PolitiFi sector, investor interest surged, propelling the token’s market value by an estimated $100 million.
However, the sudden selloff by the core team has cast a shadow over this momentum. Many traders and community members are questioning the ethics behind such a move, especially given the timing and the potential to influence the market artificially.
Senators Demand Ethics Probe Over Investor Influence
Adding a political dimension to the controversy, Democratic Senators Elizabeth Warren and Adam Schiff have formally called for a government ethics investigation into the matter. In a letter to the U.S. Office of Government Ethics, the senators expressed concerns that Trump’s involvement and the investor dinner may have directly led to speculative behavior and market manipulation.
They argue that Trump’s association with the token could be driving inflated demand and value, resulting in an unfair advantage for early holders or insiders.
Futures and Derivatives Data Reveal Market Caution
Despite the soaring spot price, underlying market data reveals a different story. According to Coinglass, the token’s futures open interest dropped by 8% to $734 million, while derivatives trading volume declined by 13% to $2.7 billion. These figures indicate growing caution among more sophisticated market participants, who may view the recent rally as unsustainable.
The decline in open interest and trading volume suggests that traders are pulling back from leveraged positions, perhaps anticipating a price correction or increased regulatory scrutiny.
Conclusion
The TRUMP coin saga highlights the complex and often volatile intersection of politics and crypto. With nearly $20 million offloaded ahead of a high-profile investor event, and calls for a federal ethics investigation growing louder, the project finds itself at the center of intense scrutiny.
Whether the token’s recent surge is a sign of long-term potential or just another hype-driven spike remains to be seen. For now, investors and onlookers alike will be watching closely as the May 22 dinner approaches.