Beware of Trump memecoin scams

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Last Updated on 11 August 2024 by CryptoTips.eu

There have been 2 cases of scams involving so-called Trump meme coins this week alone, and as the US presidential election heats up, you can be sure that those won’t be the last.

In both cases, Trump fans were urged to purchase these usually very cheap crypto coins. Once a large number had been purchased and the price reached an all-time high, the price of that coin collapsed. A classic ‘pump and dump’.

We have listed them so that you can see what to pay attention to next time.

Do note that not all Trump memecoins are scams. TREMP and MAGA, for example, have been around for months and shot up after the failed assassination attempt on the former president (as his chances of becoming president also increased). PEPE is also purchased by Trump supporters.

But be careful with some others.

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DJT

Earlier this week, one of the best-known Trump memecoins called ‘DJT’ (which stands for Donald J Trump) crashed in a predicted rug-pull move, when the wallet that held about 20% of all original tokens suddenly sold all its coins after which the price collapsed by 90%.

We reported about this on Thursday. This story was extensively covered in the American press as the founder of that coin was Martin Shrkeli, better known as ‘Pharma Bro’, a convicted criminal.

Ever since then, several US investors in the currency have stated that they will seek to recover their investment through a court case. To be continued.

RTR

Ever since Donald Trump was the keynote speaker at the Bitcoin 2024 conference in Nashville, several of his family members have also started mentioning digital currencies on social media. Earlier this week his son Donald Trump Jr sent a message about a crypto project he would soon start, without mentioning the name.

A day later, a ‘Restore the Republic’ (RTR) memecoin was launched, which didn’t seem to move much in the first few hours until Ryan Fournier, the chairman of ‘Students for Trump’, claimed that RTR was an official Trump coin

Suddenly the coin’s price skyrocketed and its market capitalization was around $155 million at its highest point that day. Just then, the person who created the coin sold about 50% of all available coins, causing the price to drop by 95%.

Eric Trump, another son of the former president, then tweeted that RTR was not an official coin of the Trump campaign. Just like the previous case, this case will undoubtedly be followed up with several lawsuits by victims.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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