Trump-themed Meme coin DJT catches the horse plot: the issuer "self-destructed" and has a history of fraud, and the token fell by more than 60% within the day

PoliticalFi is the focus of this bull market. Recently, the MEME coin DJT became popular due to rumors of "the purest Trump concept coin", but then a twists and turns were staged. In the end, the mysterious trader Martin Shkreli had to reveal his identity during the bounty activity.

It is difficult to tell the truth from the false, using information asymmetry and public opinion to create influence

As a strong candidate for the US presidential election, Trump-related MEME tokens have become the object of market speculation, especially It is his use of cryptocurrency as a campaign strategy that drives the emotional value of investors.

On June 18, foreign media Pirate Wires tweeted, "There are rumors that Trump is launching the official token $DJT on Solana," but the media did not give the source. A number of media outlets have also participated in DJT-related reports. For example, Fox Business stated in the report, “Although it is impossible to confirm the direct or indirect relationship between DJT tokens and Trump, people related to the former president plan to sell the DJT tokens for at least two months. Pirate Wires reported that Trump’s son Barron was leading the project, citing unnamed sources, but its editor later clarified that he had “not spoken directly to Trump, specifically. Trump may beat around the bush and say it's not true," and said in the community controversy that he would no longer report related encryption news.

But Bo Loudon, a well-known Trump supporter, published an article claiming that "DJT is the only real Trump coin" (now deleted), adding more credibility to DJT, and multiple Trump series Tokens were also affected by this and fell collectively, with some investors even selling the leading token TRUMP worth millions. Looking at DJT, the market value of the token once exceeded the $400 million mark.

In addition, the huge bet also adds more highlights to DJT. Martin Shkreli, the former president of Turing Pharmaceuticals, while suggesting that DJT was Trump’s official token and “calling for orders” for the token, made millions or even hundreds of millions of dollars in bets with a number of crypto KOLs, such as GCR Make a $100 million bet with Martin Shkreli on whether DJT launches for Trump. Who would have expected that this executive of a pharmaceutical giant would be the real manipulator.

While the community was doubtful, the blockchain data company Bubblemaps issued an analysis saying that DJT is actually not related to Trump, and about 67% of the DJT supply Concentrated in one cluster, 43% of the total supply sits on Raydium, the Solana ecosystem’s automated market maker.

The on-chain detective ended up solving the case, and the issuer urgently blew himself up

In order to find the real behind-the-scenes leader of DJT, the on-chain data analysis platform Arkham also stated that Arkham Intelligence will provide any clear proof of Trump’s A bounty of US$150,000 is provided to users who are the issuers of DJT tokens on the popular Solana chain. Subsequently, on-chain detective ZachXBT stated on the platform that it had submitted a bounty application to Arkham for the identity of the DJT token issuer.

ZachXBT tweeted, "Martin Shkreli urgently messaged me privately after I announced that I would submit a bounty application for DJT token issuer information to Arkham, and then issued a temporary statement announcing that it was It’s so funny that it issued the token.” He also said, “Should we reveal the insider friend Martin recommended to buy before Mike Solana/Pirate Wires posted?” In addition, some community members revealed that Martin Shkreli is DJT’s TG club. The first members of the group and the administrators came from Martin's previous projects. Or to reverse the passive situation, Martin Shkreli took the lead in revealing his identity at the Space event on X.

Martin Shkreli is the co-founder of the hedge fund MSMB Capital Management and the former CEO of Turing Pharmaceuticals. He rose to fame after making a fortune betting against a number of pharmaceutical companies as a teenager. In 2018, Martin Shkreli was arrested by the FBI and sentenced to seven years in prison for securities fraud and wire fraud. Because Martin Shkreli once raised the price of a life-saving drug by more than 55 times, the BBC called him "the most hated man in the United States" and was banned from entering the pharmaceutical industry for life. Trump also described Martin Shkreli as a "spoiled brat, which is a disgrace."

Turing Pharmaceuticals was protested for raising drug prices Source: Associated Press

Shortly after Martin Shkreli was released early in May 2022, the "pharmaceutical brother" immediately moved to Web3. Martin Shkreli founded Web3 drug discovery startup Druglike and raised $3 million in funding. For this reason, the US Federal Trade Commission (FTC) also took Martin Shkreli to court, but the latter stated that the company was not a pharmaceutical company. Martin Shkreli also operates in the crypto market. The token he launched, Martin Shkreli Inu (MSI), plummeted after a large number of tokens were sold. Now it has fallen by more than 96% from its highest point.

Martin Shkreli is also very active in the crypto field. In addition to sharing prison survival advice with SBF, he also revealed that he holds some cryptocurrencies and NFTs such as Milady. Recently, he was also fined for copying an American hip-hop music group that was previously confiscated. Wu-tang Clan’s original album was sued by the crypto art collection platform PleasrDAO, and the album has now been sold as a $1 NFT.

DJT tokens plummeted, and insiders took profits.

As the traders behind DJT were revealed, DJT tokens began to plummet. Dex Screener data shows that DJT fell by nearly 66.7% during the day, with its market value only about one-third of its peak.

At the same time, many insiders profited and exited. According to Lookonchain monitoring, the third largest holder of DJT (possibly an insider) had spent 1,363 SOL (approximately ($188,000) purchased 52.09 million DJT, and the wallet earned approximately $1.04 million in SOL in just 2 days; another insider (insider trader) also spent only $9,400 and earned more than $1 million, Revenue increased 110 times; a certain DJT major, verso.sol, sold USD 832,000 worth of DJT tokens. This address is also a major holder of Martin's other project Shoggoth.

In contrast, many investors suffered heavy losses. Lookonchain monitors that a trader spent 2,500 SOL (approximately $342,100) to purchase 91,705.6 DJT on June 18, but only received 4.91 SOL ($673) when he sold it, and lost 34.14 in less than 1 minute. Thousands of dollars in damage to this user may have been caused by a sandwich attack.

"When I get out of prison, I will be richer than before." Martin Shkreli once said in prison. Where the money is, Martin Shkreli is there, and now it seems that the encryption field is becoming a profitable "new business opportunity" for Martin Shkreli after he is released from prison.

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