The Solana memecoin TrumpCoin (DJT), created by Barron Trump and Martin Shkreli (also known as Pharma Bro), suddenly plunged by over 98% early Tuesday amid the broader crypto meltdown. Shkreli claims that Barron, Trump’s son rugged the token.
DJT dropped to as low as $0.00004445 a few hours before publication time, crashing the market cap from over $56 million to sub $500,000, according to data from Dexscreeener. The token slightly recovered to a $4.5 million market cap. However, the liquidity remains unlocked and has been depleted to the dangerous level of $6,000.
DLT token price chart, Dexscreener Shkreli accuses Barron Trump of rugging TrumpCoin
Unlike the market meltdown that affected crypto prices generally, TrumpCoin’s price crashed because liquidity was pulled, according to Dexscreener data. The crypto on X initially accused Shkreli of rugging DJT tokens. However, he claims he does not have the keys to the token contract, directing responsibility to Barron Trump.
“Ask barron, i dont have the keys or any tokens,” Shkreli responded on X. “You do [need keys] to remove LP. and i dont have any tokens, i didnt sell any today, or yesterday, or this month,” he responded elsewhere.
certainly what it looks like
— Martin Shkreli (e/acc) (@MartinShkreli) August 6, 2024
Shkreli said the only person he knows to have the keys is Barron Trump. “Well not me. Only person i know to have the keys is BT,” Shkreli precisely noted.
Shkreli further claimed to have stopped paying attention to the token “once the kid stopped returning my calls.” He then implied that Barron rugged TrumpCoin, even though the former president’s son has not confirmed he’s involved in the project.
Barron Trump’s involvement with TrumpCoin unverified
Shkreli said that TrumpCoin “was made by Barron, a third guy, and myself.” However, the claim of Trump’s involvement in the project has been a subject of contention over recent months.
TrumpCoin rallied in June on claims that it was related to Trump’s camp and issued by Barron. This was first reported by Pirates Wires, which claimed that Donald Trump was launching an official token called DJT with his son, citing some “conversations.”
hey @RowdyCrypto! it was made by barron, a third guy and myself. i think i went through this story a million times. i don't have the keys. glhf.
— Martin Shkreli (e/acc) (@MartinShkreli) August 6, 2024
However, Trump’s camp didn’t come forward to claim the report or token, stirring skepticism about its ownership. When pressed for information, Pirate Wires creator Mike Solana said he “didn’t speak with Trump directly” and was “just reporting what I know via sources.”
Meanwhile, on-chain sleuths discovered that DJT’s Telegram channel shared the same admins as a channel for a token supported by Shkreli. The discovery led to suspicion that Shkreli was behind DJT, which he denied at the time.
Later after crypto trader GCR, ZachXBT, and Arkham Intelligence had pressed to uncover the creator, Shkreli then came out to admit his involvement in TrumpCoin, claiming he co-created the token with Barron.
Neither Barron nor Trump’s camp has issued a statement confirming their involvement with the token, and so most people continue to doubt that Trump’s son was ever involved in the project.
Shkreli was once convicted of defrauding investors in two hedge funds he founded. A federal judge sentenced him to seven years in prison, and he was released in 2022. Perhaps, due to his background, most people allege Shkreli pulled the rug, but he claims otherwise.