Trump Memecoin DJT Based on Solana is Fake: Inside the Scam

In a shocking revelation that has rocked the cryptocurrency market, the Solana-based memecoin called DJT, initially marketed as a project backed by Donald Trump’s youngest son Barron, has been exposed as a fraudulent scheme. The orchestrator behind this scam is none other than Martin Shkreli, a controversial figure previously known for his provocative maneuvers in the pharmaceutical industry.

The Trump Coin (DJT) is fake

The intrigue around DJT began when some insiders claimed that Barron Trump was involved in the creation of the memecoin, offering early investment opportunities to a select few. This narrative quickly gained traction within the crypto community, attracting significant attention and speculative investments, such as Bitcoinist reported Yesterday.

The turning point came when Arkham Intel, a crypto intelligence firm, announced a $150,000 reward for the true identity of the creator of the DJT memecoin. This announcement sparked a flurry of activity among cryptocurrency investigators. In particular, ZachXBT, a respected figure within the cryptographic detective community, played a critical role in uncovering the deception.

Around 11:49pm UTC, ZachXBT responded to the Arkham bounty announcement, indicating his submission for the reward. Shortly thereafter, at 23:57 UTC, Martin Shkreli, in a state of panic, sent a message directly to ZachXBT. At 00:27 UTC, Shkreli had taken to a space on X to publicly declare himself as the mastermind behind the DJT project.

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Concurrent with Shkreli’s admission, there were significant financial transactions related to memecoin that suggested illicit behavior. An individual with the username vero.sol, previously a member of other Shkreli projects, was discovered downloading $832,000 worth of DJT, converting these funds into USDC and transferring them to a centralized exchange. This transaction, along with association with Shkreli’s other crypto projects, highlighted a pattern of deceptive financial practices aimed at profiting from misleading claims.

Was it revenge to make Trump look bad?

In particular, the consequences of the scam had immediate repercussions on the associated financial instruments and interested parties. Steven Steele, Marketing Director for legitimate TRUMP memecoinhighlighted the confusion and damage caused to Trump’s legitimate business interests, noting in particular a significant drop in the stock price of Trump Media, which also trades under the ticker DJT.

“Martin was sentenced to prison under President Trump’s watch. President Trump had this to say about Martin at the time: ‘He seems like a spoiled brat. I thought it was a disgrace’ – Trump said of Martin. […] Considering the history of bad blood between Martin and Trump, is it really that much to consider that the DJT token was partly created out of revenge to make Trump look bad and do good damage to the Trump brand, while simultaneously lining his own pockets for himself and Trump . insiders? I can’t say for sure, but it certainly seems likely,” Steele speculated via X.

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Further complicating Shkreli’s legal position, Adam Cochran, managing partner of CEHV, discussed potential probation violations. Shkreli, still subject to conditions that limit his financial dealings and prohibit any form of self-employment involving clients’ money, now faces serious legal consequences. Cochran specifically pointed out that Shkreli’s use of an offshore Kucoin account to fund memecoin may not have been reported to parole authorities, flagging possible fraud and parole violations.

“So either he goes to prison for fraud, or he ran an investment opportunity on Barron’s behalf and goes to prison for violating the terms of his parole. But more importantly, do you think he includes his offshore Kucoin account (with which he financed this coin) in his financial reports to the courts?,” Cochran wrote via X.

The DJT exhibition memecoin scam has sparked a larger conversation within the crypto community about the nature of memecoins and their impact on the cryptocurrency market. Prominent trader Josh Rager has lamented the focus on speculative and meme-based projects that undermine the integrity and potential of blockchain technology.

Anger underlined that “the cryptocurrency market and the industry as a whole need to refocus on promising technology, on teams/projects building something useful. There has been a shift in the meme narrative and it has been a net negative result with a oversaturation of tokens and crap carpets that flooded the market Today was a real revelation for many people.”

At the time of writing, the legitimate TRUMP (MAGA) coin was trading at $8.62.

TRUMP price, daily chart | Source: TRUMPUSDT on TradingView.com

Featured image by Zanyar Ibrahim / Unsplash, chart by TradingView.com

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