Outside Source
TL:DR;
- Within just over a day after its launch, the Trump-backed and endorsed meme coin has already created numerous success stories of investors getting in at the right time and (some) getting out.
- Nevertheless, meme coins remain highly volatile and risky assets, and investors should be wary before allocating funds to them.
The president-elect shook the entire crypto market on Friday night when he announced the launch of the OFFICIAL TRUMP (TRUMP) meme coin and invited his millions of followers and supporters to join his community.
Despite the controversial launch and fears about a potential hack or a scam, the token became an overnight sensation. Its price is now worth $40, while its market capitalization has soared past $8 billion, making it the third-largest meme coin, sitting behind only DOGE and SHIB.
With this remarkable rise in value within mere hours, the number of success stories for traders who got in early (possibly insiders) and have already sold some portions to capture massive profits has gone through the roof.
Turned $1.1M into $70M in just 4 hours—incredible!
This trader has sold 1.35M $TRUMP for $3.65M, and still holds 4.62M $TRUMP($67.5M), bringing his total profit to over $70M!https://t.co/m1k6zmKgLA pic.twitter.com/U3IeU23PER
— Lookonchain (@lookonchain) January 18, 2025
After the initial buying spree, more information emerged later from Lookonchain about deposits to large exchanges, such as OKX, where the same traders most likely capitalized on the price rally by selling off their tokens.
Whale “Fpj236…uVJr” deposited all 1.27M $TRUMP ($43.9M) into #OKX an hour ago, with a profit of $29.6M!https://t.co/RN5fXx11CW pic.twitter.com/4HyHZSHgou
— Lookonchain (@lookonchain) January 19, 2025
One of the more famous traders, which Lookonchain called ‘legendary,’ made $6.8 million on the TRUMP token within a day after securing a $12.5 million profit from BOME last year.
OFFICIAL TRUMP’s launch was a highly successful and impressive story. However, not all meme coins have the same spectacular path. There are thousands of such tokens released on a daily basis, and most turn into quick rug pulls, leaving investors with empty hands. As such, traders should be wary when dealing with meme coins, even if they are launched by the upcoming US president.
This article first appeared at CryptoPotato
