The developers of TRUMP, the official crypto token of the United States president Donald Trump, have withdrawn over roughly $4 million USDC in liquidity.
Onchain analytics platform Lookonchain shared the details of the transaction on 18 September from Solscan, revealing that the devs withdrew 1.85 million USDC and $1.77 million in TRUMP.
The incident has raised suspicion that there are plans to rug holders of the token eventually, a situation in which the liquidity is withdrawn and the token is left with no value.
Abusing loyalty
Trump launched the TRUMP token shortly after assuming office as president. At the time, the token received so much goodwill that it grew rapidly in value, rising to over $70 before crashing to stabilize around the current price of just over $8.
Despite the initial crash, TRUMP is still loved by many holders who believe the value could still go up, particularly as the altcoin season is being anticipated.
According to some influencers, the withdrawal of liquidity — no matter how small — is therefore considered a betrayal of the love and trust that Trump supporters have given the project.
The withdrawal however hasn’t affected TRUMP at the time of reporting, because the price remains largely unchanged.
This means the liquidity withdrawn may not be enough to cause a noticeable change now, but the story may eventually change if more of such withdrawals happen.
A trend with celebs
Many celebrities have launched tokens in their names in the past, none of which have survived for long.
This has led to influencers warning the crypto community against buying any celebrity tokens, as most of them are rugged shortly after launch.
For TRUMP, the story seemed to be different until now. Holders may need to exercise caution going forward, as many possibilities abound with tokens like this.
The incident will also potentially open the door for Democrats to criticize the president more strongly now since they have always opposed the idea of the token.
What do you think?
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