DJT, a new meme coin on Solana (SOL), is seeing a surge in trading activity and a massive price spike following a rumor that the token is an official crypto token from former US President Donald Trump.
If the rumor is true, it would mark the first time a US presidential candidate has launched their own cryptocurrency. However, at the time of writing, there is no official statement from Trump’s side regarding the news.
DJT Witnesses Over 1,000% Surge in the Last 24 Hours
The rumors started with a tweet from The Pirate Wires’ X (Twitter) account on Monday. The platform reported that Trump is launching DJT as his official token, spearheaded by his son—Barron Trump.
Mike Solana, Editor-in-Chief of Pirate Wires, shared the token’s contract address in the thread. Yet, he later clarified that he had not spoken with Trump directly and was simply reporting information from his sources.
Read more: How to Buy Solana Meme Coins: A Step-By-Step Guide
These tweets sparked a frenzy around the DJT, which has the same name as Trump’s company, Trump Media and Technology Group, stock ticker. According to DEX Screener data, DJT momentarily reached a market capitalization of over $5 million at 22:30 on June 17.
However, at the time of writing, its market capitalization has decreased to $794,990. DJT is now trading at $0.0007990, representing an increase of 1,451% for the last 24 hours.
This news has sparked debates within the crypto community. Tommy Shaughnessy, co-founder of Delphi Digital, advised caution. He suggested that the Pirate Wires account might have been hacked and that DJT could be a scam.
Additionally, Shaughnessy noted several red flags from the DJT token. These include the lack of a locked liquidity pool, funding from KuCoin, and a high concentration of tokens held by top owners.
“Trump doesn’t want to be the first to take credit or tweet about it? No shot. I lean scam,” Shaughnessy wrote.
Blockchain data provider Bubblemaps shared their on-chain analysis. Its research shows that 67% of the DJT supply is in one cluster.
Furthermore, Bubblemaps noted that Raydium Concentrated Liquidity holds 43% of the supply. Meanwhile, one cluster holds the other 46%, with significant transfers to 140 wallets.
Read more: 11 Top Solana Meme Coins to Watch in June 2024
Despite skepticism, some crypto community members believe DJT might be an official token from Trump. They argue that the token’s distribution aligns with Trump’s potential strategy of directly hoarding the supply and selling small amounts. However, they acknowledge that the token supply of 10 billion is unusual for Trump, who might prefer a smaller, more valuable supply.
Other Trump-inspired meme coins, including MAGA and TREMP, are currently on the market. These meme coins have experienced meteoric rises, particularly after Trump delivered speeches that showed his support for the crypto industry.
While the truth behind this rumor is still uncertain, the DJT token remains a hot topic among the crypto community. Whether it will crash like other celebrity meme coins or sustain its value depends on the veracity of the Trump rumors and the community’s response.
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