A fake Eric Trump-themed memecoin launched on Solana’s memecoin launchpad Pump.fun, rose more than 6,200% in the past 24 hours, raising red flags among blockchain analysts who warned of a potential rug pull.
A newly-created Eric Trump (ERICTRUMP) memecoin with the token address “jv7d” surpassed $140 million in market capitalization within a day since its launch on May 16, CoinMarketCap data shows.
The memecoin’s distribution raises significant red flags that point to a rug pull “in the making,” warned blockchain data platform Bubblemaps in a May 16 X post.
A rug pull typically refers to the sudden removal of liquidity or mass sell-off by token insiders, often resulting in a steep price collapse that leaves retail holders with worthless tokens.
Looking at Bubblemaps’ token clusters for the 250 largest holders, the majority of these tokens are held across 10 token clusters, founded by 10 main crypto addresses.
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The token’s ownership pattern is reminiscent of recent memecoin collapses, including the Wolf of Wall Street-inspired WOLF token, created by Hayden Davis, the co-creator of the Official Melania Meme (MELANIA) and the Libra token.
Over 82% of the WOLF token’s supply was held by the same entity, which led to a 99% price crash after the token peaked at a $42 million market capitalization.
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Eric Trump token deployer created four scam tokens
The deployer behind the fake Eric Trump token also created three other Eric Trump tokens that failed on Pump.fun,” a Bubblemaps investigator told Cointelegraph.
Blockchain data shared by the firm shows that these tokens were all created around the same time by the Solana blockchain address “BjTm.”
Industry watchers have been increasingly vigilant about rug pulls since the meltdown of the Libra (LIBRA) token, endorsed by Argentine President Javier Milei, which saw eight insider wallets cash out $107 million in liquidity, leading to a $4 billion market cap wipeout within hours.
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