Trump Meme Coin Crashes After Fundraising Event as Major Holders Liquidate VIP Tokens, Raising Concerns Over Insider Selloffs and Market Volatility

After a widely publicized crypto fundraising event hosted by former President Donald Trump, the official Trump-themed memecoin experienced a sharp price decline—falling nearly 15%—as top holders and VIP attendees sold or transferred a significant proportion of their tokens. Blockchain analysis showed that prior to and following the high-profile gala, a large segment of the major recipients, including some with unique event-linked digital assets, liquidated or moved their holdings, with the largest wallets decreasing from 11.3 million to 7 million tokens. The immediate aftermath of these sales triggered an 8.84% price plunge, raising concerns among traders about potential insider trading, market manipulation, and the limited long-term value of celebrity-endorsed cryptocurrencies. Lawmakers criticized the practice, alleging ethical risks around exchanging digital assets for access to political figures and calling for greater regulatory scrutiny and transparency. Market observers warn that such coordinated VIP selloffs can add significant downward pressure and volatility, especially for tokens driven by hype rather than fundamental utility. Traders should remain alert to liquidity risks, pump-and-dump cycles, and increased short-term fluctuations in event-linked or celebrity-backed crypto tokens, as these factors may present both trading opportunities and cautionary signals in the meme coin sector.