TL;DR

The DJT token, thematically linked to Donald Trump and his son Barron, plunged 90% on August 6, 2024, due to a massive $2 million sell-off executed by a single wallet.
The wallet controlling 20% of the supply conducted a large transaction that led to the token’s collapse. The funds were redistributed to four different wallets.
Martin Shkreli, who had claimed to have created and promoted the token with Barron Trump, has distanced himself from the project following the price drop, blaming Barron and denying holding tokens or having access to private keys.

The DJT token, thematically associated with Donald Trump and his son Barron, suffered a drastic 90% drop in value on August 6, 2024. The dramatic decrease in market capitalization, which fell from $55 million to $3 million within minutes, was triggered by a massive $2 million sell-off conducted by a single wallet.

The collapse was triggered by the wallet ‘4UGm6’, which held approximately 20% of the total DJT supply. In a single transaction, it liquidated a massive amount of tokens, causing a chain reaction that led to the token’s rapid collapse. Subsequently, the proceeds from the sale were distributed to four different wallets.

According to data from Coingecko, TrumpCoin (DJT) was trading at $0.0058. Within just over two hours from the start of August 6, the token plummeted almost immediately, losing 90% of its value. It is currently trading at $0.0005392.

Not taking a shot at you mate.

You are part of the group that created the contract but don’t have the keys.

That kinda makes you partly responsible, do you agree?

— CryptoLaw.eth (@RyuSSX) August 6, 2024

Martin Shkreli Distances Himself from DJT

DJT, launched in early June, had gained notoriety for its alleged connection to Donald Trump and his son Barron. Martin Shkreli, known for his previous role as “Pharma Bro,” had initially claimed that he and Barron Trump created and promoted the token. However, following the price drop, Shkreli distanced himself from the project, blaming Barron Trump for the collapse. In social media comments, Shkreli denied holding DJT tokens or having access to the private keys controlling liquidity funds, and expressed criticism about the situation.

Further investigations revealed that the DJT Telegram channel shared administrators with another token backed by Shkreli, fueling speculation about his involvement in the project. Additionally, it was discovered that a major holder of the token also had significant investments in SHOGGOTH, another Shkreli project, highlighting possible connections between the two initiatives.

Despite the controversy, Donald Trump’s campaign has not issued any official comments on the matter or on Barron Trump’s involvement in the DJT project. The lack of a clear response has left the community speculating about the true reasons behind the token’s value collapse and Shkreli’s involvement with the project.

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Filed under: News - @ August 6, 2024 4:19 pm