Trump Meme Coin Insiders Plan Sales as Gala Drives Price Spike
The cryptocurrency firm behind President Donald Trump’s meme coin, $TRUMP, promoted a gala dinner featuring the president himself to boost investor interest. However, insiders controlling the largest share of the meme coin have reportedly prepared to sell substantial portions of their holdings, raising ethical concerns. Since September 1, the biggest owner transferred around $70 million worth of $TRUMP to an account that enables the sale of these tokens, according to public crypto transactions reviewed by The Washington Sun.
The transfers coincided with the announcement of the gala at the Trump National Golf Club in Virginia, which triggered a brief price spike in $TRUMP from $2.05 to $2.23. The event, billed as "the most exclusive dinner in the world," offers winners a chance to attend based on their $TRUMP purchases over the next two months. Despite the hype, the price has since settled back to $2.04. Critics argue that the gala is a tactic to drive up the meme coin’s value so insiders can sell at higher prices.
Zach Everson, research director at Public Citizen, noted that while retail investors are encouraged to hold $TRUMP for a chance at the gala, the creators’ tokens are being moved for sale. "Regular buyers are urged to hold for a shot at dinner with the president, while tokens reserved for the coin’s creators head for the exits," Everson said. President Trump reportedly made $1.4 billion from his crypto investments last year, with $600 million from $TRUMP, while retail investors lost $4.7 billion overall.
A White House official defended the gala, stating that no private meet-and-greet with the president will be offered, and that the event is a private function, not a government-related activity. Corey Frayer, director of investor protection for the Consumer Federation of America, suggested that the gala announcement was timed to allow insiders to sell tokens at inflated prices. Crypto investor Nick Pinto, who lost $400,000 on $TRUMP, called the situation "the grift continues until morale improves."