Copycat tokens flood market after Trump launches meme coin

More than 700 unauthorized cryptocurrency tokens were sent to the Donald Trump digital portfolio within three weeks of its official launch of the same.

According to a Financial time Analysis, the fleet of coins aroused warnings on the potential deception of investors.

The overvoltage started within 30 minutes of the initial announcement of Trump, the creators operating Solana (GROUND) Blockchain characteristics that allow deposits not offered in other wallets.

Hundreds of these tokens use names related to Trump or family members, including “Official Trump” and “Official Melania”, despite no real association with the president.

The real real Trump piece, indicated in the graph below, is down 24.6% in the last seven days.

The analysis revealed that 167 copy pieces on the theme of the Trump family, with 67 using the word “official” in their name. Unauthorized tokens also target Trump’s children: 30 Barron reference, 26 Mentions of Ivanka and 10 include the name of Eric.

35 Other tokens are trying to associate with the CEO of Tesla, Elon Musk, an ally of Trump.

The main colleague of Brookings Institution, ESWAR PRASAD, told the FT that Trump’s entry into the parts even had “opened valves to deception and creeping speculation”, putting ordinary investors at substantial risks.

The investigation revealed suspicious negotiation models. In one case, an account bought $ 100,000 from a false “Trump” piece and sold all of the detention 12 seconds later.

Many tokens have a minimum commercial activity. The play by “Barron Trump”, despite a notional value of $ 6 billion on the basis of its last trade, has not seen an activity since January 21, its largest transaction being only $ 242.

Deputy Professor of Columbia Business School, Omid Malekan, noted that “uninformed investors” are faced with distinct challenges of legitimate imitations.

The situation has overwhelmed certain Crypto exchanges, with the CEO of Coinbase, Brian Armstrong, recognizing that the evaluation of the million new tokens created each week is “more possible”.

“And regulators must understand that the request for approval for everyone is also fully impracticable at this stage (they cannot do 1 m per week),” said Armstrong. “He must go from an authorization list to a list of blocks and use customer reviews / automated ONCHAIN ​​data, etc. To help customers sift through. This and we will continue to integrate the support of native dex. Customers should not need to know or worry about whether the trade occurs on a Dex or a CEX. »»