Presidential Rugpull: The Hidden Costs of Trading $TRUMP and $MELANIA

Well, well, well… What happens when you mix presidential politics with memecoins? The past few days in crypto land have been a masterclass in how not to introduce newcomers to digital assets. Our stars of the show? The freshly minted $TRUMP and $MELANIA tokens, serving up a peculiar cocktail of politics, FOMO, and questionable financial decisions.

While $TRUMP managed to sustain some value from the hype (at least temporarily), $MELANIA pulled a classic vanishing act - disappearing faster than campaign promises after election day!

This spectacular show serves as Exhibit A in our ongoing series: "Why Following Celebrities Into Crypto Might Leave You With Empty Pockets."

Crypto Newbies and First-time Investors Buy $TRUMP

Adding that all up to the equation, the odds for newcomers and their wallets are pretty unfavorable. Of course this is nothing new, we in crypto have seen a fair share of scams, shitcoins and so on - however, it is the targeting towards unsuspecting, non-technical citizens which drives the ethical concerns.

Here's a delicious slice of irony: A new survey claims that 42% of these token buyers are complete crypto newcomers. Meanwhile, "How to buy crypto" is trending on Google like it's instructions for printing free money. What could possibly go wrong? Everything, dear readers. Everything.

Remember your crypto baptism by fire? Those character-building moments of watching your "sure thing" investments evaporate? Well, our fresh-faced friends are about to get the premium experience, going up against:

• Insider traders who knew about the launch before their morning coffee ☕
• Trading algorithms that make Wall Street look like amateur hour 🤖
• The hype and FOMO of the crypto degen army 🤡

In the grand tradition of crypto chaos, we've seen plenty of questionable tokens come and go. But targeting unsuspecting citizent who think blockchain is something you buy at Home Depot? That's a special kind of nasty!

Insider Trading and Rugpull Accusations

And while the token's launch created quite the buzz, what happened behind the scenes is raising some serious eyebrows!

Here's where things get spicy: The blockchain doesn't lie, folks! Some super observant analysts spotted a wallet that mysteriously received a cool $1 million just four hours before the token hit the market.

But wait, it gets better - or worse, depending on how you look at it! A whopping 80% of all $TRUMP tokens are apparently chilling in wallets connected to the Trump Organization.

That's one hefty chunk of the pie! And given Trump's potential influence over crypto regulations, this whole situation is starting to look about as transparent as a brick wall.

Let's be real here - when someone gets a million-dollar head start before the race even begins, you've got to wonder if someone leaked the starting time! And with most tokens being controlled by insiders, well… let's just say this memecoin party might have had its guest list decided way before the doors opened!

$TRUMP Tokenomics

If you look closer at the tokenomics (image below) you will find that only 20% of the 200M $TRUMP supply is dedicated towards public ("Liquidity" and "Public Distribution").

The rest is vested with daily unlocks over the next 24 months. That means that the "Creators and CIC Digital" groups (whatever that is) will not be able to access the entire supply at once, but instead will get their share gradually.

Although some of the creator groups are able to access as much as 25% of their share upon the token creation event (TGE). Generally, the more supply the creator controls, the higher are chances for a rugpull to occur (in this case kind of high given other ethical issues).

It is true that vesting is used as a way of protecting investors agains rugpull and establishing long-term comitment, but in this case it seems more performative than actually useful.

Anyone knowledgable in crypto should see that this schedule is carrying some serious red flags. The twist is that a large portion of $TRUMP investors are not exactly that - they are beginners who don't know much about vesting schedules.

This is another reason to rather stay safe if you're not 100% certain what you are doing.

What Happens When the Hype is Over

The truth is, these tokens have zero - and we mean ZERO - actual utility or long-term staying power! They're purely riding the hype train, nothing more, nothing less. This isn't some serious investment strategy - it's just internet excitement doing its thing!

Listen up, especially if you're new to crypto (welcome to the wild side! 🎉): We need to be super clear about what's really going on here. When people talk about "expressing support" by buying these tokens, let's call it what it is - you're basically making a donation! Don't expect to see that money again!

And here's the kicker: once the buzz dies down (and it always does), these tokens typically nosedive straight to zero unless they magically develop some real use. That's just how it goes in memecoin land!

So if you're thinking about jumping in, just remember: This isn't an investment - it's a hype party! 🎈 And like all parties, it eventually ends!

Future for $TRUMP and $MELANIE

Let's have a final chat about what you're getting yourself into!

Think of memecoin trading like joining a party where everyone's wearing blindfolds and trying to pin the tail on the donkey - except the donkey keeps moving! Sure, it looks fun from the outside, but there's more to this game than meets the eye.

Want to dip your toes in? Awesome - just make sure to do your homework first! Short-term trading is like playing hot potato: those with the inside scoop (usually way before launch) tend to win. And long-term holding? Well, let's just say it's about as risky as using a chocolate teapot - 99% of the time, things get pretty messy!

Here's the thing: trying to outsmart the memecoin market is like trying to outswim a school of sharks. There are some pretty big fish in this pond, if you catch my drift!

Thanks for coming to my TED talk! Stay savvy out there! 😉