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Exchanges Face Scrutiny Over Rapid Listing of Trump’s Meme Coin

Regulators are pressing for stricter vetting after concentrated insider holdings triggered heavy retail losses.

The logo for Coinbase Global Inc, the biggest U.S. cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron and others at Times Square in New York, U.S., April 14, 2021. REUTERS/Shannon Stapleton/File Photo
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Overview

  • Eight of the ten largest crypto platforms listed $TRUMP within 48 hours of its January launch, with Coinbase approving trades in just one day despite its “rigorous” vetting pledge.
  • The token’s terms allocated 80% of the supply to the Trump family and partners, raising classic pump-and-dump warnings before trading began.
  • After peaking at $75.35 two days after release, $TRUMP plunged below $10 by April, leaving most holders nursing heavy losses.
  • Analysis by Bubblemaps indicates 45 wallets gained $1.2 billion while over 712,000 wallets lost $4.3 billion, with exchanges earning roughly $172 million in fees.
  • Exchanges have defended the accelerated listings as responses to user demand despite admitting that political hype overrode normal risk standards.