The team behind the official TRUMP meme coin sparks rug pull concerns among traders after removing $4.6 million from its liquidity pool ahead of a $320 million token unlock.
In a recent post, on-chat data analysis from LookOnChain revealed that developers of the presidential meme coin previously extracted a large chunk of USD Coins (USDC) from its liquidity pool, worth $4.6 million. The USDC pile is later bridged to Ethereum (ETH) before they were deposited into Coinbase Prime.
Coinbase Prime is a brokerage platform that is mainly used for institutional investors. It offers institutional traders a variety of on-chain services including trading, financing, and custody of digital assets.
Many traders in the comments section responded to this news by speculating that a big sell-off may be on the way as the team appears to cash out on the token’s liquidity. While it does not indicate a full exit, traders have begun raising concerns about a potential rug pull.
“When the dev moves like that, it’s usually one of two things.. exit or reposition. Either way, eyes on the next move,” said one trader.
“Trump and dump move,” said another trader.
Meanwhile, a different user reacted to the move by posting a meme of a rug seller with the text “I didn’t choose the rug life, the rug life chose me.”
At press time, the official TRUMP (TRUMP) meme coin is down 2.72% in the past 24 hours. It is currently trading hands at $7.87, which is nearly 90% lower than the meme coin’s all-time high price at $73.43. However, when compared to its historical low of $4.29, it is still 83% higher.
In the past week, the token has gone up more than 6%. The Solana (SOL)-based meme coin’s market cap stands at $1.5 billion, with a $350 million daily trading volume.
The recent withdrawal of $4.6 million in liquidity comes a day prior to the unlocking of 40 million tokens or 20% of the circulating supply, which is valued at approximately $320 million. These tokens, held by affiliates of the Trump Organization, are scheduled to start unlocking on April 17 and will continue daily throughout the next two years.
