Over 700 unauthorized cryptocurrency tokens have been sent to Donald Trump’s digital wallet in the three weeks following his official meme coin launch, raising concerns about potential investor deception.

The Rise of Copycat Coins

The surge started within 30 minutes of Trump’s initial token announcement, with creators exploiting Solana blockchain features that allow unrequested deposits into other wallets. Hundreds of these tokens use names connected to Trump or his family members, including “OFFICIAL TRUMP” and “OFFICIAL MELANIA,” despite having no actual association with the president.

Trump Family-Themed Copycat Coins

The analysis found 167 Trump family-themed copycat coins, with 67 using the word “official” in their names. The unauthorized tokens also target Trump’s children: 30 reference Barron, 26 mentions of Ivanka, and 10 include Eric’s name. Another 35 tokens attempt to associate with Tesla CEO Elon Musk, a Trump ally.

“Trump’s entry into meme coins has opened the floodgates to deception and rampant speculation, putting ordinary investors at substantial risk.”

said Brookings Institution senior fellow Eswar Prasad.

Suspicious Trading Patterns and Risks to Investors

The investigation revealed suspicious trading patterns. In one case, an account purchased $100,000 of a fake “Official Trump” coin and sold the entire holding 12 seconds later at a loss. Many tokens show minimal trading activity, with the “OFFICIAL BARRON TRUMP” coin, despite a notional value of $6 billion based on its last trade, has not seen activity since Jan. 21, with its largest transaction being just $242.

Challenges for Crypto Exchanges and Investors

Columbia Business School adjunct professor Omid Malekan noted that “uninformed investors” face challenges distinguishing legitimate projects from imitations. The situation has overwhelmed some crypto exchanges, with Coinbase CEO Brian Armstrong acknowledging that evaluating the roughly one million new tokens created weekly is “no longer feasible.”

Armstrong suggested a shift from an allow list to a block list, utilizing customer reviews and automated scans of on-chain data to help customers sift through. He emphasized that customers shouldn’t need to know or care whether the trade is happening on a DEX or CEX.

Protecting Yourself from Unauthorized Tokens

To avoid falling victim to unauthorized tokens, follow these tips:

  • Research the token’s legitimacy and verify its connection to the project or individual it claims to represent.
  • Be cautious of tokens with minimal trading activity or suspicious trading patterns.
  • Use reputable exchanges and follow their guidelines for verifying token authenticity.
  • Stay informed about the latest developments in the cryptocurrency market and be aware of potential risks.

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