Concerns about a potential rug pull are swirling among cryptocurrency traders after the development team associated with the official TRUMP meme coin withdrew significant liquidity. On-chain data highlighted the removal of $4.6 million from its liquidity pool, an action preceding a substantial $320 million token unlock.
Analysis revealed the developers initially moved the funds as USD Coin (USDC), transferring $4.6 million out of the project’s liquidity. This sum was subsequently bridged to the Ethereum blockchain and deposited into Coinbase Prime.
Coinbase Prime serves primarily institutional investors, offering specialized services like advanced trading, financing options, and secure custody for digital assets. The choice of this platform for the withdrawn funds has added to trader speculation.
This development triggered unease within the trading community, with many interpreting the move as a potential precursor to a large sell-off as the team possibly converts token liquidity into cash. While not a definitive exit, the action has heightened concerns about the project’s stability.
“Developer movements like this usually signal one of two things: an exit or repositioning. Either way, all eyes are on their next step,” commented one market observer.
Another trader succinctly remarked, “Trump and dump move.”
Meanwhile, the incident prompted humorous, albeit concerned, reactions, including memes referencing rug pulls, underscoring the community’s apprehension.
At the time of reporting, the official TRUMP token experienced a 2.72% decline over the past 24 hours, trading at $7.87. This price point is approximately 90% below its all-time high of $73.43 but remains 83% above its historic low of $4.29.
Despite the recent dip, the token has shown resilience, gaining over 6% in the past week. The Solana-based meme coin currently holds a market capitalization of $1.5 billion and registers a daily trading volume of $350 million.
The $4.6 million liquidity withdrawal occurred just one day before a significant token unlocking event. Scheduled to begin on April 17, this event will release 40 million TRUMP tokens, representing 20% of the circulating supply and valued at around $320 million. These tokens, held by affiliates of the Trump Organization, are set to unlock incrementally over the next two years, adding a layer of complexity and anticipation to the token’s future market dynamics.