Trump-Linked Memecoin GOLD Token Crashes by 95% in Hours

A Solana-based memecoin called GOLD Token has crashed by over 95% within hours after its launch, leaving investors reeling. The token's value briefly rose to $62 million in market capitalization before plummeting to around $800K. This drastic price drop raises concerns about the legitimacy and security of tokens that rely on political branding.

The GOLD Token was promoted by the account @realtrumpcoins1, which is followed by U.S. President Donald Trump. However, regulators may scrutinize such politically branded memecoins after this incident. The developer wallet held 600 million tokens, with 15 newly created wallets spending just $18,657 to acquire 224.5 million tokens.

These 15 wallets sold their entire holdings for 3,178 SOL, worth about $330,000, generating an estimated $312,000 profit or a 17-times return on the original outlay. The team still retained a large remaining position, keeping supply highly concentrated.