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- A trader lost 26,820 USDC within two minutes after purchasing TRUMP tokens based on the fake news.
- Amid the recent incident, the meme coin’s daily trading volume surged by 54% to over $1 billion, while futures open interest rose 16.89% to $293 million.
The Official Trump (TRUMP) meme coin saw a massive 20% move, facing a huge pump and dump, after false rumors circulated that it would have real-world utility. As it turns out, the compromised X handle of popular crypto news outlet DB led to the spreading of this rumor.
In no time, the TRUMP price shot up from $10.2 to more than $12.4. However, soon after, it crashed back to $10.75 levels, as the outlet confirmed that the account was hacked.
Several X users reported that DB’s account had also shared false information claiming that BlackRock had filed for a spot HYPE ETF. DB has since deleted the unauthorized posts and issued a statement urging users to disregard any messages posted during the security breach. The crypto news media outlet wrote:
Obviously hacked. Do not trust any messages for now. Unclear what happened, 2FA/Yubikey etc all enabled. Assuming a compromised X employee or similar, all keys and sessions have been reset regardless.
Investors Lose 26K USDC on TRUMP Fake News
Traders need to exercise caution and verify market news before making trading decisions. Following the dissemination of fake news about $TRUMP by the hacked DB account, an individual swiftly created a new wallet and withdrew 504,820 USDC from Binance to purchase $TRUMP tokens.
However, as the news was debunked shortly after, the trader sold the tokens, incurring a rapid loss of 26,820 USDC within just two minutes, as per the data from Solscan. This incident highlights the importance of due diligence in a volatile market environment.
The Official Trump meme coin has been among the hardest hit altcoins during this crypto market correction. From its peak of $75 in January, this meme coin has corrected by a massive 85% and is currently trading around $10.5. Amid the current episode, the daily trading volume for TRUMP has also surged by 54% to more than $1 billion. Furthermore, as per the Coinglass data, the TRUMP futures open interest has surged by 16.89% to $293 million while the 24-hour liquidations have soared to more than $3.06 million.
Did Insiders Offload Any Tokens During the Pump?
The launch of the TRUMP token underscores the inherent risks tied to speculative digital assets, particularly when early investors hold a substantial edge over retail participants.
According to an update from 10x Research, insiders acquired TRUMP tokens during a pre-inaugural Washington crypto event before the token became available for public trading, as highlighted in our last news article.
These early investors benefited from the token’s initial price surge, which briefly hit $70. However, the rally was short-lived, with prices plummeting to $10, causing significant losses for retail traders who joined late.
