Trump Meme Coin Surges Briefly Amid Exclusive Dinner Promo Insider Sell-Off
The price of the $TRUMP meme coin briefly spiked after a crypto firm promoted an exclusive dinner with President Donald Trump. The firm, which backs $TRUMP, announced a contest offering seats at a gala event at Trump National Golf Club in Virginia. Winners would be chosen based on how much $TRUMP they purchase over the next two months. The news drove the coin's value from $2.05 to $2.23, though it later dropped back to $2.04.
Meanwhile, the largest holder of $TRUMP moved tens of millions of dollars' worth of tokens into a selling position. Public records show transfers totaling $70 million, $27 million on September 1, $26 million on September 6, and $18 million on September 20. Experts say such transfers are a preliminary step before selling.
Zach Everson, research director at Public Citizen, noted that the account holding these tokens was originally reserved for the coin's creators. He added that regular investors are encouraged to hold their tokens for a chance at the dinner, while the creators' tokens are being prepared for sale. Trump reportedly made over $600 million from the meme coin last year, with retail investors estimated to have lost $4.7 billion overall on his crypto ventures.
Corey Frayer, a former adviser to ex-SEC Chair Gary Gensler, suggested that the dinner contest was designed to boost the meme coin's price, allowing insiders to sell at higher valuations. A White House official dismissed claims of buying access, stating that the event is private and not a government function. One investor who lost $400,000 on $TRUMP summarized the situation with a text: 'The grift continues until morale improves.'