In the unpredictable world of crypto, new strategies and scams emerge daily, but Trump’s latest maneuver is a masterclass in market manipulation. By leveraging memecoins, FOMO, and his own election hype, Trump orchestrated one of the boldest plays in recent memory. Using classic “buy the rumor, sell the news” tactics, he lured investors with promises of riches, only to leave them holding the bag.
Here’s how Trump turned investor expectations into his personal profit machine.
Act 1: TrumpCoin and the Meme Mania
It all began with TrumpCoin, a memecoin launched on Solana, marketed as the future of patriotic crypto.
Adding to the hype, Melania launched her own memecoin, creating a frenzy among retail investors who couldn’t resist the allure of “Trump-backed” crypto.
The FOMO reached fever pitch as Trump fueled the narrative, hinting at big announcements tied to his election bid on January 20. The hype led investors to dump their portfolios, including altcoins, to buy into TrumpCoin and his newly launched crypto fund, Liberty Finance (WLFI).
Key Tweet Highlight:
As pointed out by WazzCrypto, Trump’s strategy was to attract as many investors as possible during the election FOMO period, promising groundbreaking news and massive returns. This narrative caused a massive inflow of funds into TrumpCoin and WLFI, leaving the rest of the market in the dust.
Act 2: Liberty Finance and the On-Chain Reveal
While TrumpCoin was gathering steam, Trump and his team launched Liberty Finance (WLFI), a crypto fund marketed as a way to empower investors by giving them access to exclusive altcoins and high returns.
But… on-chain data tells a very different story…
According to SpotOnChain, Trump and his team collected massive amounts of funds from WLFI token sales. Instead of delivering on their promises, they funneled the money into a carefully orchestrated altcoin buying spree. By the time the market realized what was happening, Trump had already secured his position as the largest holder of several undervalued altcoins.
Act 3: The January 20 Rug Pull
January 20 arrived, and the crypto world braced for the promised pump. But instead of mooning, $TRUMP and $MELANIA took a nosedive. Investors who had bet their portfolios on Trump’s narrative were left holding worthless tokens.
Tweet Evidence:
- As AshCryptoReal highlighted, the dump was swift and devastating. Trump and his team liquidated their positions, leaving investors reeling.
- The funds raised from $TRUMP, $MELANIA and $WLFI sales were used to buy up altcoins at rock-bottom prices, creating the ultimate rug pull.
Act 4: Buy the Rumor, Sell the News (Trump Style)
Trump weaponized “buy the rumor, sell the news” like never before.
- The Rumor: His election campaign and promises of massive gains tied to $TRUMP and $MELANIA, with the World Liberty Finance group promotion.
- The News: The election date itself, which became the perfect opportunity for Trump to dump tokens and cash out.
As AshCryptoReal pointed out, the on-chain data reveals Trump’s strategy in stark detail: attract funds during the FOMO, crash his tokens, and use the collected funds to accumulate undervalued altcoins.
The Genius (and Audacity) of Trump’s Move
This wasn’t just a rug pull; it was a perfectly executed market manipulation strategy. Trump turned FOMO into a weapon, using investor expectations and the hype around his election campaign to amass wealth at the expense of retail investors.
Lessons for Crypto Investors
- FOMO Is a Trap: The promise of massive gains often blinds investors to the risks.
- Buy the Rumor, Sell the News: When everyone expects a pump, the dump is usually imminent.
- On-Chain Evidence Matters: Platforms like SpotOnChain can help identify suspicious activity before it’s too late.
Conclusion: The Ultimate Rug Pull?
Trump’s crypto play will go down as one of the boldest (and most controversial) maneuvers in blockchain history. He weaponized FOMO, manipulated the news cycle, and left retail investors scrambling.
For those of us watching from the sidelines, the lesson is clear: in crypto, expect the unexpected. And next time you see a celebrity-backed token, remember: it might not be about empowering you—it might just be about rugging you.
Have your own thoughts on Trump’s move? Share your stories and let the conversation begin!