This week, the team behind the TRUMP memecoin has again intensified its activity of withdrawing funds from liquidity pools on the Solana network. Over the last 10 hours, analysts have recorded the removal of $3.39 million in USDC stablecoins. This movement coincided with a sharp spike in the token's price, raising legitimate questions about insider motivation.
The Mechanics of Withdrawal: Not a Sale, but a Systematic Drain
It is important to emphasize: the team is not dumping TRUMP directly on the open market. Instead, it deposits tokens into one-sided liquidity positions on the decentralized exchange Meteora. The exchange into USDC happens automatically during trader transactions within a specified price range. The resulting stablecoins are then transferred to centralized platforms, including Coinbase.
This is no longer a one-off action, but a well-oiled system. Back in April 2025, the same wallet withdrew $4.6 million and moved the funds to the Ethereum network, and then to Coinbase Prime. By December, volumes had grown to $94 million over 30 days, with transactions going in batches ranging from $2 million to $17.2 million through Fireblocks addresses linked to Coinbase.
The Context of the Rise: Trump's Statements and Market Reaction
The current price surge is partly explained by recent statements from President Donald Trump about a possible expansion of government reserves in bitcoin. This news has heated up interest in the crypto market as a whole, and the memecoin associated with the politician's name traditionally reacts to such signals more sharply than others. Coinbase CEO Brian Armstrong also announced the start of a new growth cycle, citing increased interest in the industry.
The Cost of the Issue: Who Pays for This Scheme?
The main losses from such a strategy are borne by retail investors. Since the coin's launch, about 1 million TRUMP buyers have lost a total of $3.81 billion. The developers have also announced the release of another 96 million tokens from the unlocked supply in the coming months, which creates additional downward pressure on the price.
Liquidity withdrawal does not always crash the price — the first blow is absorbed by the pool's depth, and further movement depends on demand in the spot market. However, small pools make the coin extremely vulnerable to sharp swings. The risk increases if another piece of news about Trump again drives up the price, as is happening now.
Blockchain data does not yet show weekly volumes comparable to December's, but the main question remains open: will insiders continue to take liquidity with every news-driven price increase? If so, then the current rise is just another exit opportunity, not the start of a sustainable trend.
My expert view: This kind of scheme is a classic "pump and dump" in a modern decentralized execution. As long as the team controls the pools and reacts to news catalysts, retail traders will remain in the role of liquidity providers. Any positive news backdrop becomes a window for fund withdrawal, which makes TRUMP an extremely risky asset for long-term holding.