The TRUMP token is facing new scrutiny after its developers quietly withdrew $4.6 million in USDC from the project’s liquidity pool, a move that has rattled investor confidence just before a massive token unlock.
Blockchain analysts tracked the funds as they moved from the Solana blockchain to Ethereum and were later deposited into Coinbase Prime, a platform typically used for high-volume transactions and institutional storage. The timing—just hours ahead of the scheduled release of 40 million TRUMP tokens—has raised serious questions about the token’s future stability.
The $TRUMP dev pulled 4.6M $USDC from the pool by removing liquidity 13 hours ago.
Then they bridged 4.6M $USDC to #Ethereum and deposited it into #CoinbasePrime.https://t.co/ORSLE6vJiAhttps://t.co/Cgybm89XTi pic.twitter.com/NI3gZsJWFI
— Lookonchain (@lookonchain) April 16, 2025
Liquidity Exit Stokes Selloff Fears
Although liquidity removals don’t always signal bad intentions, the sudden exit from the pool coincides with a release that will increase circulating supply by 20%. Analysts warn this could amplify sell pressure, particularly if token holders interpret the developer move as a lack of long-term commitment.
In the immediate aftermath, TRUMP saw a sharp 12% price drop, falling from $0.05 to $0.044 in under an hour, before recovering slightly. Trading volume more than doubled during the panic, indicating rising tension among holders.
Questions Linger Over Project Structure
Concerns surrounding the TRUMP token aren’t new. Earlier reports detailed irregular wallet activity, including developer-linked accounts offloading large amounts of tokens without prior purchase history. One wallet reportedly sold $18 million worth of TRUMP, furthering fears of centralized control and insider advantage.
Adding to those concerns is the fact that a single wallet continues to hold 80% of the token’s supply, making the ecosystem highly vulnerable to concentrated decision-making and possible coordinated exits.
Trump Family’s Crypto Push Complicates Narrative
Compounding investor unease is the Trump family’s growing involvement in blockchain ventures. A new project—an Ethereum-based real estate game modeled after Monopoly—is scheduled to launch this month, led by Trump associate Bill Zanker.
Branded under the “World Liberty Financial” umbrella, the Trump-backed Web3 initiative includes several family members, including Donald Jr., Eric, and Barron Trump, who are listed as official advisors. While the real estate game aims to introduce play-to-earn mechanics, critics argue the effort appears timed alongside TRUMP token developments and may signal a broader monetization strategy using the family’s brand recognition.
🎲 @realDonaldTrump‘s family enters Web3 gaming with a new real estate crypto game inspired by Monopoly GO, expanding their footprint in blockchain and digital assets.#Web3 #CryptoGaming https://t.co/tIyS1R8dBl
— Cryptonews.com (@cryptonews) April 15, 2025
Public records show that 75% of revenue from World Liberty Financial’s offerings will reportedly flow to a Trump-affiliated company, raising red flags about potential conflicts of interest and financial motivations behind the scenes.
A Familiar Pattern for Political Meme Coins?
The TRUMP token joins a growing list of politically affiliated crypto projects that have drawn criticism for lack of transparency and developer accountability. Previous tokens like MELANIA followed similar trajectories—initial hype, liquidity exits, and eventual value collapse.
While TRUMP still holds over $327 million in decentralized liquidity—making it one of the more heavily funded meme coins—market watchers say the recent events underline how quickly sentiment can shift.
Investor Advisory
As the token unlock progresses and market reaction unfolds, investors are urged to monitor developer wallets and upcoming transfers closely. The current situation highlights the fragile line between branding, hype, and the risks of centralized token control.
In a space where trust is as valuable as technology, the TRUMP token’s latest chapter may determine whether it can retain a loyal following—or become another cautionary tale in crypto history.