TRUMP Insiders Take Liquidity Out of the Project, Is a Rug Pull Incoming?
2025-04-17
As the TRUMP memecoin prepares for a major token unlock on April 17, investor confidence has taken a hit. The developer wallet that originally launched the token just pulled $4.6 million worth of USDC liquidity from the pool—and sent it directly to Coinbase.
The move, flagged by blockchain analytics firm LookOnChain, has raised serious concerns about the intentions of the project’s insiders, especially with $300 million worth of TRUMP tokens set to unlock in the next 24 hours.
Read More: How to Buy Official Trump (TRUMP)
Key Takeaways
- $4.6 million USDC liquidity was removed by the TRUMP developer wallet (Lr5G7).
- The funds were bridged to Ethereum and sent to a Coinbase wallet, suggesting a potential off-ramp to fiat.
- 40 million TRUMP tokens, or 20% of the circulating supply, will unlock on April 17.
Developer Wallet Removes Millions Ahead of Unlock
Source: Thedefiant
The developer wallet, Lr5G7, which deployed the TRUMP token, took action on April 15 by withdrawing $4.6 million of USDC liquidity from the memecoin’s trading pool. The USDC was bridged to Ethereum and then transferred to a Coinbase address, likely for liquidation.
This is the first transaction from the wallet since February 5, and it happens just 48 hours before the project’s first major token unlock—a cliff event involving 40 million TRUMP tokens, valued at over $300 million.
What’s Being Unlocked?
The April 17 event marks the first round of team and investor token unlocks for TRUMP. The 40 million tokens represent 20% of the circulating supply, and any significant dump of these tokens could crash the price.
Notably, when the token launched, 80% of its supply was sent to the Official Trump Meme Team’s wallet, reportedly managed by CIC Digital LLC, the same group behind Trump NFTs.
Why This Matters: A Red Flag or Misunderstood Timing?
While liquidity removal doesn’t automatically signal malicious intent, doing so before a major unlock raises eyebrows. Removing liquidity lowers the depth of the market, making it easier for large sales to drastically move the price. If insiders decide to sell during the unlock window, the lack of liquidity could magnify the downside.
That said, the token still retains over $326 million in remaining liquidity, which could act as a buffer. However, TRUMP has been in a steep downtrend since peaking at $75 on January 19, now trading at $7.75—a nearly 90% drop.
Final Thoughts
With funds moving to centralized exchanges and a $300 million unlock looming, the market is understandably nervous. Whether this is a strategic withdrawal, a misstep in optics, or a warning of things to come, one thing is clear: TRUMP token holders should remain cautious and monitor activity closely over the coming days.
FAQs
What is happening with the TRUMP token unlock?
40 million TRUMP tokens—worth about $310 million—will unlock on April 17 for the team and early investors.
Why is the liquidity removal suspicious?
Removing liquidity before a token unlock can signal a plan to sell into thinner markets, raising concerns about insider behavior.
Is this a confirmed rug pull?
No, but the timing and actions are unusual and raise questions. Investors should exercise caution and observe further on-chain activity.
Panama Announces More Crypto Adoption: Will Accept Bitcoin and Ethereum for Public Payments
In a landmark move for crypto adoption in Latin America, Panama City has announced that it will begin accepting Bitcoin (BTC), Ethereum (ETH), and stablecoins like USDC and USDT for public service payments.
Citizens will soon be able to use crypto to pay for taxes, permits, tickets, and municipal fees—a shift signaling growing institutional comfort with digital assets.
Key Takeaways
- Panama City will accept Bitcoin, Ethereum, USDC, and USDT for government-related payments.
- The initiative was passed by the city council and announced by Mayor Mayer Mizrachi.
- The city will partner with banks to automatically convert crypto into fiat for compliance.
A Bold Step for Crypto Integration
Mayor Mayer Mizrachi shared the news on X (formerly Twitter), stating that Panama City found a way to implement crypto payments without requiring new legislation. The strategy? Partner with a bank to handle the fiat conversion.
“Public institutions must receive funds in USD, so we partnered with a bank who will take care of the transaction—receiving in crypto and settling in fiat,” Mizrachi explained.
This workaround allows Panama’s largest city to bypass previous legislative hurdles that delayed similar efforts in the past.
Read more about Bitcoin (BTC):
Bitcoin Price (BTC), Market Cap, Price Today & Chart History
BTC to USD: Convert Bitcoin to US Dollar
How It Will Work
Residents will soon be able to make government payments in select cryptocurrencies, which will then be converted to dollars by a partnered financial institution. Initially, the city will support BTC, ETH, USDC, and USDT, with potential for additional tokens in the future.
There’s no confirmed launch date yet, but the move is part of a broader push to modernize government services and make Panama City a crypto-friendly hub in Latin America.
Panama’s Crypto Journey: From Veto to Innovation
While this development is promising, Panama has had a complicated history with crypto legislation. In 2022, President Laurentino Cortizo partially vetoed a crypto regulation bill, citing the need for greater financial oversight.
Despite national-level caution, local governments like Panama City are moving forward with digital asset initiatives that sidestep legislative delays while still complying with financial regulations.
Read more about Ethereum (ETH):
ETH to USD: Convert Ethereum to US Dollar
Ethereum (ETH), Market Cap, Price Today & Chart History
Global Context: Crypto in Public Services
Panama City joins a growing list of jurisdictions integrating crypto into government systems. Notably:
- El Salvador and the Central African Republic recognize Bitcoin as legal tender.
- Regions in Switzerland allow Bitcoin payments for local services.
- Fiji and Tonga have considered official adoption.
This global trend underscores a significant shift: from treating crypto solely as speculative assets to recognizing their potential as functional payment methods.
FAQs
When will Panama City start accepting crypto for payments?
The city has passed the proposal, but a specific start date has not yet been announced.
Which cryptocurrencies will be accepted?
Initially, Panama City will accept Bitcoin, Ethereum, USDC, and USDT.
Is this legal under Panamanian law?
Yes. The city bypassed the need for new legislation by partnering with banks to convert crypto to USD before it's received by public institutions.
Disclaimer: The content of this article does not constitute financial or investment advice.
