In a dramatic turn of events, the Donald Trump-themed DJT token on the Solana blockchain experienced a staggering 90% drop in value earlier this Tuesday. The crash was triggered by a single wallet that sold $2 million worth of the token in one transaction, causing its market capitalization to nosedive from $55 million to just $3 million in a matter of seconds.
The wallet, identified as ‘4UGm6,’ reportedly held 20% of the total DJT token supply. The sale netted the wallet 15,500 SOL, which was then swiftly dispersed across four different wallets, according to crypto social application @0xppl_.
DJT was launched in early June and quickly gained traction, partly fueled by rumors linking it to former President Donald Trump and his son, Barron. The token’s rapid rise in market capitalization left many in the crypto community speculating about the true identity of its creators.
On June 18, Martin Shkreli, the controversial figure known as “Pharma Bro,” claimed that he and Barron Trump were behind the creation of the DJT token. Despite his initial denials, Shkreli later admitted to helping Barron issue and promote the tokens on social media platform X.
Further investigation by blockchain analysts around June 19 revealed that DJT’s Telegram channel appeared to share the same administrators as another token associated with Shkreli. This discovery raised further questions about the token’s origins and the motivations behind its creation.
Adding to the intrigue, at least one significant holder of both DJT and Shkreli’s other project, Shoggoth.ai, had been cashing in on their investments while Shkreli publicly supported the tokens. One large DJT holder, in particular, sold nearly $830,000 worth of the token from a wallet that also contained millions of dollars in SHOGGOTH tokens.
The sharp decline in DJT’s value has left many investors reeling and raised concerns about the token’s future in the volatile crypto market. The involvement of high-profile figures like Shkreli and the rumors surrounding Barron Trump have only added to the mystery and uncertainty surrounding DJT.
