A token allegedly related to Eric Trump has increased in value by approximately 6,200% since its launch last week on Pump.Fun, a site where many memecoins are introduced to the market. On its first day of launch in the market, the token exploded to become a $140 million project, according to information provided by CoinMarketCap.
The astonishing rise of the token has raised serious concerns in the blockchain industry about the likelihood of it undergoing a typical "rug pull." This term describes a scam in which the token creators quickly remove liquidity or sell their stakes, causing the token's price to plummet before buyers receive worthless coins.
Bubblemaps has drawn attention to the unusual concentration of ownership holdings related to the meme coin. Analyzing the token transactions reveals that 10 distinct addresses hold the majority of the top 250 wallets. This is "a rug pull in the making," Bubblemaps posted on X on May 16.
The ownership structure of ERICTRUMP is similar to that of tokens like WOLF before they collapsed. The creators of WOLF are also responsible for creating the Official Melania Memecoin and the failed LIBRA project. WOLF lost nearly all its value after soaring to a market cap of $42 million, primarily due to a single user holding over 82%.
It was found that the creator of the ERICTRUMP token attempted to launch several other Eric Trump tokens on Pump.Fun, but none of the tokens achieved significant success. A researcher from Bubblemaps disclosed, "the deployer behind the fake Eric Trump token also created three other failed Eric Trump tokens on Pump.Fun," according to a report by Cointelegraph.
Recent events are unfolding in response to the increasing attention and suspicion surrounding various projects leading to significant losses. Argentinians still remember the LIBRA project as a troubling experiment initiated by their president.
Eight internal wallets have withdrawn $4 billion in market value from the project in a short time. Moreover, a report from Solidus Labs labeled 98% of Pump.Fun tokens as a "scam." This adds to the severity of concerns regarding rug pulls surrounding the Eric Trump memecoin.