Donald Trump’s recent launch of memecoins has caused quite a stir in the trading world. Pump.fun, a platform on Solana, saw its trading volume skyrocket. It exceeded $3 billion in just one week!
On January 23, trading hit an impressive $544 million in a single day, breaking all previous records. This excitement kicked off on January 18 when Trump introduced his TRUMP memecoin. He followed it up with a MELANIA token just before his inauguration on January 20.
Trump's token launches sparked a wave of imitation coins. Many rushed to capitalize on the newfound interest in memecoins. According to Blockaid, the number of cryptocurrencies with "Trump" in their name jumped from 3,300 to 6,800 around the time of the official token release.
A study by Cointelegraph found that at least 61 of these new coins tried to trick investors. They copied tickers, branding, or descriptions to appear official. Trump has only recognized TRUMP and MELANIA as legitimate. However, traders are speculating about future tokens named after his family members.
This trend has significantly impacted Pump.fun. One token named “Barron Trump” briefly soared to a $27 million valuation before falling to under $4 million. Research shows that bot activity plays a big role in Solana's trading metrics. Memecoin creators often use bots to inflate their token stats and attract investors.
Despite its rapid growth, Pump.fun faces scrutiny. The platform is close to reaching $500 million in cumulative revenue, which has caught the attention of Burwick Law. They have threatened legal action on behalf of unhappy investors. According to Burwick Law, incidents of rug pulls and speculative failures on Pump.fun have led to significant losses for investors, while the platform continues to earn hefty fees.
Pump.fun has also had to shut down its livestream feature. This feature had turned into a space for extreme and controversial content. Memecoin promoters resorted to shocking tactics, including self-harm and animal abuse, to spike token prices and attract investors.