A new cryptocurrency, DJT, has sent shockwaves through the political token market (PoliFi). Launched two months ago, DJT's value skyrocketed by 180% on rumors of former President Donald Trump's involvement. However, the claim remains unverified, with many questioning its legitimacy.
The rumor originated from a report by Pirate Wires, a news source known for its critical political commentary and tech optimism. They allege Trump is launching an official token named DJT on the Solana blockchain, with his son Barron leading the project.
Certain people are treating the report with seriousness, even though neither Trump nor his team have verified it. Mike Solana, a venture capitalist with a name coincidentally similar to the blockchain named Solana, shared a smart contract address associated with the DJT token, seemingly for transparency. This token has reached a market value of $177 million.
Meanwhile, existing PoliFi tokens linked to Trump, like the Trump token and Tremp (a Trump-Donald Duck mashup), saw significant price drops (30% and 40%, respectively). Even the Joe Biden-themed Boden token dipped 30%.
The uncertainty surrounding the DJT token has reverberated throughout the cryptocurrency market, with traders closely monitoring its impact. In particular, the news has sparked volatility in SOL price, the native cryptocurrency of the Solana blockchain, as investors assess the potential implications of Trump's rumored involvement.
Representatives of the Trump token believe they are the target of a deceptive scheme. Steven Steele, the token's marketing director, called it a "greedy psy op" aimed at hurting their value.
Adding to the confusion, Mike Solana himself admitted he hadn't spoken directly to Trump and acknowledged the possibility of a "rug pull" (sudden abandonment of the project) or denial from Trump. The Trump campaign has remained silent on the matter, and Trump hasn't mentioned the token on his social media platform.
The crypto community is largely skeptical. Even a prominent Trump supporter in the crypto space, Ryan Selkis, gives the token a 50/50 shot of being real. A prediction market platform assigns only a 7% chance of Trump launching a token by this week.
