The internal team of the $TRUMP meme coin project was recently recorded collecting 3.39 million USDC over the last ten hours. The project, which is closely affiliated with the family of U.S. President Donald Trump, did not cash out its funds through open sales on standard crypto exchanges. Instead, they chose the route of manipulating liquidity pools, repeatedly injecting and withdrawing funds.
This covert cash-out activity was clearly recorded on-chain by @lookonchain, an analytics account that regularly monitors the movements of large crypto players. The tug-of-war maneuver was deliberately chosen to convert assets into cash without having to place massive sell orders that could dump the token’s price on the open market.
Avoiding Direct Sell Traces
This liquidity tug-of-war tactic is relatively neat because it leverages the basic mechanisms of decentralized trading. Rather than dumping millions of $TRUMP tokens directly onto the market and triggering panic among retail buyers, the development team slipped their tokens as additional liquidity into the pool. Once other users transacted, the insiders immediately withdrew the artificial liquidity, taking home USDC as the final result.
This pattern of entering and exiting the pool was repeated multiple times until the value swelled past 3.39 million USDC. This maneuver made the sell-off far more covert and kept the price from crashing instantly during the cash-out process. This withdrawal follows a string of previous activities, where on-chain trackers also caught the same insiders transferring 2.62 million TRUMP tokens to the OKX exchange.
Sharp Contrast with Public Denials
What makes this cash-out operation problematic is its timing. The withdrawal of millions of USDC took place almost concurrently with the presidential family’s public appearance to quell speculation regarding their crypto business. Eric Trump had just issued a firm statement strongly denying any plans for a new coin release from his family.
The decision to release tokens to the market, right at the moment a family member made a public statement designed to calm supporters, instantly sparked a heated debate. The transparency and ethics of managing the $TRUMP meme coin project are now being heavily questioned. The retail community holds this token purely based on the narrative of the political figure’s closeness, so the sell-off by insiders was immediately seen as a breach of trust.
The situation where calming statements do not align with the activity of internal wallets proves that external narratives are often at odds with behind-the-scenes actions. On-chain traces can never lie, no matter how strong the denials spread to the public. Reported by @lookonchain on X.
Read also: How to Read Candlesticks for Beginners
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
