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The launch of Donald Trump’s cryptocurrency has triggered a surge in copycat tokens, raising concerns that unsuspecting investors may fall victim to scams and market manipulation.
A Financial Times analysis revealed that over 700 imitation and spam tokens have been sent to Trump’s official digital wallet, with 192 coins directly named after Trump or his family members. The influx of fake tokens underscores how rapidly opportunists have capitalized on the former U.S. president’s involvement in the crypto market.
A Flood of Imitations
Trump and his wife Melania recently launched their own memecoins—a type of cryptocurrency that holds no intrinsic value and relies solely on speculation. Since the official Trump coin’s debut, 736 unique memecoins have been deposited into the Trump wallet, including nearly 200 copycats attempting to impersonate the official project.
The first imitation coin was created within 30 minutes of the Trump coin announcement. Some of these coins even use terms like “OFFICIAL TRUMP” and “OFFICIAL MELANIA” to mislead investors. Tokens referencing Trump’s children—with names including “Barron,” “Ivanka,” and “Eric”—have also emerged despite having no connection to the Trump family.
Investor Risks and Manipulation
Experts warn that the copycat coins pose serious financial risks, especially for inexperienced investors:
- Pump-and-Dump Schemes: Scammers artificially inflate the price of copycat tokens before selling off their holdings, leaving other investors with worthless assets.
- Market Confusion: The appearance of fake tokens in Trump’s official wallet increases their credibility, making it harder for investors to distinguish between genuine and fraudulent projects.
- Illiquidity: Many imitation coins are thinly traded, making it difficult for investors to cash out their holdings.
For instance, the “OFFICIAL BARRON TRUMP” token is estimated to be worth $6 billion based on the last transaction price. However, the largest actual trade was for just $242, and the coin hasn’t been exchanged since January 21.
Exploiting Blockchain Loopholes
Memecoin creators exploit a Solana blockchain feature that allows anyone to deposit tokens into a public wallet without the owner’s permission. This means fraudulent projects can appear in Trump’s official reserve, giving the false impression of endorsement.
Omid Malekan, an adjunct professor at Columbia Business School, emphasized that uninformed investors are at greater risk, as they may struggle to identify which projects are legitimate.
Industry Overload and Regulation Concerns
The rapid increase in memecoins has overwhelmed some crypto platforms. Brian Armstrong, CEO of Coinbase, recently admitted that evaluating the 1 million tokens created weekly is no longer feasible under the company’s current processes.
Meanwhile, watchdog groups warn that Trump’s involvement in the crypto space could create a new speculative bubble. Danielle Brian, executive director at the Project On Government Oversight, expressed concerns that these copycats are luring investors into an environment where many are likely to lose money.
Key Timeline of Events
- 02:00 AM (Jan 18): Trump coin officially announced on Truth Social.
- 02:29 AM: First copycat coin minted with the same name and symbol.
- 02:31 AM: The first imitation token (Trump6900) is deposited into the Trump wallet.
- 07:15 AM – 14:00 PM: Within 12 hours, 19 copycat coins are minted, including those named after Ivanka, Eric, and Melania.
Despite the chaos, the official GetTrumpMemes.com website did not respond to requests for comment. As the memecoin frenzy continues, experts advise investors to exercise caution and thoroughly research any crypto assets before investing.
