TL;DR
Trump Coin, offered to insiders before public launch, predictably crashed, echoing classic pump-and-dump schemes. Everyday investors lost while insiders profited, highlighting the dangers of blind faith in celebrity endorsements.
Story
Another day, another crypto scam. This time, it’s Trump Coin, a digital token riding on the former president’s name. Before the public launch, insiders at a Washington “crypto ball” got exclusive access.
Imagine a velvet rope separating the privileged few from the eager masses. That’s how this pre-sale worked. Those who paid a hefty $1,500 for the crypto ball could buy Trump Coin before everyone else—a classic pump-and-dump setup.
‣ Pump and Dump: Artificially inflating an asset’s price (the “pump”) before selling off (the “dump”), leaving latecomers holding worthless bags.
The coin predictably crashed shortly after public release, mirroring countless other pump-and-dumps. Remember the 2000s dot-com bubble? History doesn’t repeat, but it rhymes.
Regular folks got duped, losing their savings while insiders profited. Stories abound of devastated families, their dreams of financial freedom turned to dust—a pattern as old as finance itself. Think Enron, Madoff, and countless others.
The rug pull left many wondering: “How could this happen?” Simple: blind faith and a lack of due diligence.
‣ Due diligence: Researching an investment before committing funds.
This incident underscores the dark side of crypto’s hype cycle: celebrities peddling coins to unsuspecting fans, making millions while their followers face financial ruin. It’s a modern-day snake oil salesman, just with digital potions.
Advice
Celebrity endorsements don’t equal sound investments. If it sounds too good to be true, it is. Research before you invest—or risk becoming another cautionary tale.