It only took a few minutes for the TRUMP memecoin to skyrocket, but just as quickly, it came crashing down, leaving traders scrambling and sparking fresh debates about market manipulation. The chaos unfolded after a misleading post on X claimed that TRUMP, a Solana-based token associated with the U.S. president, would soon have official utility. Within moments, whale traders poured in, fueling a massive price surge – only to watch the token collapse when the news turned out to be fake.
Table of Contents
How Fake News Set Off a Frenzy
The drama started when the crypto news account DB posted on X that TRUMP could soon have real utility, implying a move beyond its current meme status. The market reacted instantly, with traders piling in, hoping to capitalize on what seemed like a major turning point for the token.
But less than ten minutes later, DB clarified that the post was the result of a hack. The supposed “utility” announcement was nothing more than a fabrication. By then, however, the damage was done. TRUMP had already surged by over 19%, reaching a high of $12.4 before plunging back down to $10.8 when the truth came out.
The quick rise and fall wiped out leveraged traders and triggered waves of liquidations, with many losing thousands within minutes. Some traders were left questioning whether the hack was really an external attack – or something more calculated.
Short-Lived Hype, Long-Term Damage?
The token’s open interest – key indicator of how many people were trading it – spiked from $196 million to $226 million during the frenzy, signaling that leveraged traders had rushed in. Many of them likely got caught on the wrong side of the trade when the price collapsed.
Adding to the uncertainty, some traders are now questioning whether DB itself – or individuals connected to it – may have had a financial interest in the pump-and-dump. If someone placed leveraged bets on TRUMP before posting the fake news, they could have made significant gains in a matter of minutes. However, no direct evidence has emerged to prove this.
The Aftermath: Another Blow to TRUMP Traders
For traders who had hoped TRUMP might stabilize, this latest event felt like just another slap in the face. Many were already frustrated with how the token’s price had been manipulated time and time again – first skyrocketing after Donald Trump himself embraced it, only to nosedive when Melania Trump introduced her own competing token. Since then, TRUMP has been on a slow, painful decline, with brief surges offering false hope before crashing again.
Now, this X account hack and the fake “utility” news have only added to the mess. For a few minutes, it seemed like TRUMP might finally gain some real use – only for traders to be hit with the reality that it was all a lie. Some who rushed in lost thousands within minutes, while some, as always, seemed to know exactly when to buy and sell.
Need a quick and easy way to see what’s happening in crypto over the next few days? Check out our Crypto Events Calendar!
